Bitcoin shrugged off Japan’s rate hike – The bigger liquidity test came from Washington

- Bitcoin shrugged off the BOJ’s rate hike like a meat wallet shrugs off a bill. The Bank of Japan raised rates to 1%, usually a death sentence for leverage, but this time the market didn’t rekt. Why? The BOJ paused bond tapering, effectively printing liquidity to cap yields while hiking short-term rates. It’s bureaucratic jujitsu: tighten policy but keep the money tap open. Previous hikes caused 18-33% drawdowns because yen carry trades unwound. This time, the unwind was muted by smaller leveraged positions and a calmed US-Iran energy shock. Bitcoin held near $66k. Don’t celebrate yet. When they actually stop buying bonds in 2027, that’s when the real liquidity test hits. Until then, enjoy the free ride before the hash manifest gets audited.