Market Analysis: Another obstacle to the rise of Bitcoin is about to collapse

Bitcoin rose on Monday as rumors of the Bank of Japan potentially easing policy, the last fortress related to ultra-low interest rates, shook the Asian market. Some Asian stock indices fell, with the Japanese Nikkei and Australian ASX indices dropping by 2%. Earlier reports suggested that the Bank of Japan may raise its benchmark interest rate this month. This would be the first rate hike by the Bank of Japan since 2007. In addition, after ending its negative interest rate policy, the Bank of Japan may abandon its bond-buying program. Analysts have long warned that the Bank of Japan is a major source of uncertainty for traditional and crypto markets. The potential unwinding of liquidity support by the Bank of Japan and resulting yen strength could jeopardize yen carry trades, potentially reinforcing a year-long risk appetite rebound in financial markets including tech stocks and cryptocurrencies.