#BTCTechnicalRecoveryAfterBreakdown

The Bank of Japan raised its key interest rate by 25 basis points to 0.75% — the highest in almost 30 years. Traditional markets reacted with a rise in Japanese indices, bond yields rose above 2%, and the yen weakened against the dollar.
Participants in the crypto market were preparing for a sharp decline, as past decisions by the regulator have often coincided with crashes. However, this time there was no significant drop. The reaction was calm, although tension remains. We have gathered the main information about the decision of the Bank of Japan and its consequences in one overview.
The main role is played by the carry trade — a strategy where money is borrowed in a country with low interest rates and moved to where the yield is higher. Japan has been a source of cheap borrowing for many years. Investors borrowed capital in yen, converted it to dollars, and directed it to more profitable assets, including cryptocurrencies.
When the stake rises:
the cost of borrowing is increasing;
the carry trade becomes less profitable;
large investors are starting to reduce risk.
At this moment, pressure is increasing on Bitcoin and the digital asset market as a whole.