Bitcoin Price Prediction: BOJ Raises Interest Rates to 0.75%, BTC Consolidates

Markets 2025-12-20 09:58

Bitcoin price prediction is once again in focus after the Bank of Japan (BOJ) raised its policy interest rate by 25 basis points to 0.75% on December 19.

This interest rate increase marks the highest level in the last 30 years, indicating that the country is now gradually exiting from ultra-easy monetary policy. Despite this massive shift in global economics, the BTC price has remained unshaken.

The largest crypto is still consolidating above $85,000, currently trading at $87,783. Over the past 4 hours, BTC has surged 1.24%, with volume up 33% during the same period. The negligible reaction by the asset shows that the event has already been priced in ahead of the announcement. 


Some believe this is due to Bitcoin’s resilience and institutional investors’ confidence in its prospects. This has led to increased demand for Bitcoin infrastructure projects that deliver real utility to BTC capital. 

Bitcoin Hyper (HYPER) is leading the Bitcoin layer-2 space with its unique infrastructure that brings Solana-like speed and scalability to the world’s largest blockchain. In its ongoing presale, the project is seeing massive demand, with some calling it the best emerging project of 2025. This guide will discuss Bitcoin price prediction and why Bitcoin Hyper is gaining traction.

Bank of Japan Hikes Interest Rate to 0.75%

Japan’s central bank has taken a notable step by lifting its benchmark interest rate by 0.25%. The move pushed rates to 0.75% on December 19, the highest level seen in almost three decades. Still, the move did not strengthen the yen. Instead, the Japanese currency slipped against the U.S. dollar, while Bitcoin edged slightly higher.


The Bank of Japan explained that inflation has remained above its 2% target for some time, driven by higher import prices and stronger domestic pricing. Even so, officials stressed that, when inflation is taken into account, interest rates are still negative. This means borrowing conditions remain loose, despite the increase.

Market reactions were surprisingly calm. In the past, similar policy shifts in Japan triggered sharp sell-offs in crypto markets as traders unwound yen-based strategies and global liquidity tightened. This time, however, investors appeared unfazed, highlighting how differently markets are responding compared to earlier tightening phases.

Analyst Blueblock wrote, “The BOJ just hiked rates to 0.75%, ending decades of ultra-loose policy and narrowing the gap with global yields. History shows that every prior tightening has triggered 20–30% Bitcoin drops as yen carry trades unwind and liquidity tightens. Yet with the hike fully priced in and BTC holding around $85k–$87k, this could be the dip buyers have been waiting for.” 

Bitcoin Price Prediction: Limited Upside or Strong Reversal?

While the world economy views the rate hike negatively, Bitcoin recovered 1.24% to reclaim $88,333 after recent volatility. The price retested the key short-term EMAs, indicating an attempt at reversal. 

With this rebound, investor sentiment has turned positive; however, the price remains in bearish dominance. Over the last few weeks, Bitcoin’s price has been consolidating between $85,000 and $90,000. The breakout in either direction will determine the short-term direction for the leading crypto. 

Bitcoin Price Prediction: BOJ Raises Interest Rates to 0.75%, BTC Consolidates

Bitcoin Price Chart. Image Courtesy: TradingView

Technical analyst Ted Pillow, in his recent analysis, noted that, “For a strong upside momentum, Bitcoin needs to reclaim the $92,000-$94,000 level.” He further added, “And if BTC loses the $88,000-$89,000 level, expect a dump towards the $85,000 level.” 

So far, the Bank of Japan’s moves haven’t had any visible effect on Bitcoin. Still, these broader economic factors can’t be ignored. When global risk sentiment shifts quickly, macro events often take control and push prices in ways that technical charts or on-chain data fail to predict.

Bitcoin Hyper Presale Nears $30 Million Defying Bear Market

While Bitcoin price prediction stagnates, Bitcoin Hyper, a BTC layer-2 project, has emerged as one of the top-performing launches of 2025. Its ongoing presale has already surpassed $29.7 million, and with over 650 million tokens sold, it’s no longer an unknown name. 

Bitcoin Price Prediction: BOJ Raises Interest Rates to 0.75%, BTC Consolidates

Bitcoin Hyper is creating a new Layer 2 network designed to unlock more utility from Bitcoin. By integrating the Solana Virtual Machine (SVM), it enables fast and affordable transactions while still relying on Bitcoin’s proven security and trust.

The network also introduces a built-in bridge that lets BTC move directly from the main Bitcoin chain to the Layer 2. Once there, holders can put their Bitcoin to work—staking it, using decentralized apps, and exploring use cases that were previously out of reach on the base network.

Bitcoin Hyper’s presale offers early investors the opportunity for a higher ROI, thanks to its revolutionary tech and massive addressable market. Early 2026 could be a key period for early HYPER holders as adoption grows and the token continues its rapid expansion.

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This content is for informational purposes only and does not constitute investment advice.

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