Japan's central bank is eyeing an aggressive monetary tightening if the yen keeps sliding. According to Citi's Asia markets chief, the BOJ could hike rates three times in 2025, potentially doubling the current policy rate.

Why should crypto traders care? Currency volatility and interest rate shifts reshape cross-border capital flows and asset valuations globally. A stronger yen policy could trigger shifts in how Japanese investors position themselves in digital assets. When central banks tighten, it often compresses risk appetite—affecting everything from altcoin rallies to stablecoin demand.

The catch: this all hinges on whether the yen weakness persists. If inflation pressures ease or the currency stabilizes, the BOJ might pump the brakes. Keep an eye on BOJ communications—policy surprises here can ripple across crypto markets faster than you'd expect.