Simply Bitcoin Could Japan TRIGGER a Bitcoin Crash to $40,000?! | Simply Originals
Dec 16, 2025
Japan's impending rate hikes could spell trouble for Bitcoin, as historical trends suggest a crash might be on the horizon. Discussions revolve around the impact of the Bank of Japan's ETF sales on liquidity and market conditions. Notably, MicroStrategy's latest Bitcoin purchase signals institutional confidence amid macro risks. Contrarian perspectives explore how market fear contrasts with potential buying opportunities, while debates on QE and future rate cuts frame Bitcoin's role as a hedge against inflation.
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Japan's Tightening Moves Global Liquidity
- Japan's rate hikes move global dollar liquidity and have historically triggered large Bitcoin drops each time.
- The yen carry trade unwind and Japan's $1T U.S. Treasury holdings amplify global liquidity tightening risks.
Slow ETF Sales Still Tighten Markets
- The Bank of Japan plans gradual ETF sales which still tighten market liquidity because selling signals direction.
- Even patient, slow selling reduces available liquidity and pressures risky assets like Bitcoin.
Debt Maturities Make QE Unavoidable
- Large U.S. debt maturities force central banks toward rate cuts and QE because refinancing at higher rates is unaffordable.
- Liquidity becomes a mathematical inevitability driving demand for hard assets when QE returns.