Bitcoin dips as markets brace for Bank of Japan's 25 bps rate hike on 19 December

Bitcoin has been sliding as traders position ahead of the Bank of Japan's widely expected 25 basis point rate hike scheduled for 19 December. In previous BoJ tightening moves in March, July 2024 and January 2025, BTC corrected between about 23% and 31%, and current on-chain metrics suggest investors are already de-risking and unwinding leverage before the announcement. The next major driver could be how the yen reacts after the meeting rather than the rate decision itself, potentially setting up either extended pressure or a short-term relief move.