– Bank of Japan meets Dec. 18-19 on interest rates – Prediction markets: 57% odds for rate increase (source: Polymarket) – Current rate: 0.5% – Crypto liquidations on Dec. 1: $643 million (source: CoinGlass) – Liquidations affected 218,844 traders – Bitcoin fell 5.2% to $86,062; Ethereum dropped 5.4% to $2,826 – Japan’s 10-year bond yield hit 1.86%, highest since April 2008 – Long positions: $567 million; Short positions: $69 million – Bitcoin accounted for $186 million in forced closures; Ethereum: $138 million – Yen carry trade under pressure due to rising Japanese rates – Previous crypto liquidations in November: $1.33 billion – Polymarket odds shifted from 50% to 57% post-Ueda speech – USD/JPY at 156.58 as of Nov. 21; potential intervention near 160 threshold

The Bank of Japan (BOJ) will meet on December 18-19 to decide on interest rates. Prediction markets indicate a 57% chance of a rate increase, impacting cryptocurrencies like Bitcoin and Ethereum.

Crypto markets experienced significant volatility with $643 million in liquidations on December 1, affecting 218,844 traders.
Bitcoin dropped by 5.2%, and Ethereum fell by 5.4% amid rising Japanese bond yields.
Long positions accounted for $567 million of the liquidations, showing many traders expected price gains.

Liquidation heatmap and data showcasing $636M in liquidations in the past 24 hours. Credit: Coinglass

Rising Japanese rates threaten the yen carry trade, which has historically funded global risk assets. If Japanese rates rise, investors may need to unwind these positions, impacting markets further.

Crypto liquidations previously topped $1.33 billion in November, indicating ongoing market adjustments.
Polymarket odds increased to 57% for a rate hike post Governor Ueda's speech, suggesting potential market shifts.
The USD/JPY exchange rate was at 156.58 as of November 21, nearing levels that could trigger currency intervention.