CoinDesk reports growing anticipation of a Japanese interest rate hike, sparking concerns about the unwinding of yen carry trades. The Bank of Japan (BOJ) is projected to potentially increase interest rates by 25 basis points at its December policy meeting, reaching levels unseen since 1995. This potential shift could diminish the appeal of yen carry trades, which thrive on Japan's ultra-low interest rates by investing in higher-yield assets. Historically, a strengthening yen often coincides with risk aversion, potentially tightening liquidity in risky asset markets like Bitcoin. While the market has largely priced in the Japanese interest rate adjustment, its impact could be amplified by rising expectations of interest rate cuts in the United States. This divergence in monetary policy may trigger significant position adjustments, adding downward pressure to Bitcoin's price and other risk-on assets. Investors should monitor BOJ announcements closely. ```