Analysis: The market expects the Bank of Japan to raise interest rates on January 24, and the cryptocurrency market needs to be wary of the impact of inflation data

ChainCatcher news, according to CoinDesk, the market expects the Bank of Japan to raise interest rates with a 90% probability at the meeting on January 24, and the yen has risen to its strongest level against the dollar in a month at 156. Japan's annual inflation rate is currently at a three-month high of 2.9%, and the central bank may raise rates from 0.25% to 0.45%.

The market is closely watching the inflation data release on January 23. If the inflation data exceeds expectations, it could trigger a new round of yen carry trade unwinding, reminiscent of last August when Bitcoin fell to $49,000. Notably, this decision will come after Trump's inauguration (January 20), and the two events may have a combined impact on the cryptocurrency market.