Bitcoin Price Experiences Correction Amid Global Economic Shifts

Market Reaction to Macroeconomic Events

The Bitcoin price has corrected by 2.48% over the past week, settling at $88,091 as of Sunday, December 21, 2025, at 11:35 WIB. This movement follows two significant macroeconomic developments that occurred almost simultaneously, creating substantial volatility in the cryptocurrency market.

Bank of Japan's Rate Hike

The Bank of Japan (BoJ) raised its benchmark interest rate to 0.75%, continuing its monetary tightening phase that began earlier in January. This level represents the highest interest rate in Japan in 30 years, signaling a significant shift in the country's monetary policy stance. The rate hike has contributed to the recent market volatility as investors adjusted their positions in response to Japan's changing monetary policy landscape.

US Inflation Data Release

The second key event was the release of the US Consumer Price Index (CPI) inflation data for November, which came in lower than market expectations. This unexpected decline in inflationary pressures has influenced investor sentiment across various asset classes, including cryptocurrencies like Bitcoin. The combination of these two major economic events has created a complex environment for investors, leading to the observed correction in Bitcoin's price.

Market Analysis and Expert Insights

Fahmi Almuttaqin, an analyst at Reku, noted that the cryptocurrency market experienced high volatility in recent days due to these macroeconomic developments. The simultaneous occurrence of the BoJ rate hike and the release of US inflation data created a perfect storm that affected investor confidence and market stability. Almuttaqin's observation highlights the interconnectedness of global financial markets and their impact on cryptocurrency valuations.

Conclusion

The current correction in Bitcoin's price reflects the market's response to significant macroeconomic events. As global financial conditions continue to evolve, investors will be closely monitoring further developments from major central banks and economic indicators that could influence cryptocurrency markets.