Markets are always using facts to slap down various predictions. Recently, something surprising happened again.

On December 19th, the Bank of Japan held a meeting, and all 9 votes were in favor of the same decision: raising the benchmark interest rate from 0.5% to 0.75%. This is a level not seen in nearly 30 years since 1995. Normally, as the provider of the cheapest funds globally, Japan tightening its purse should have caused panic. But what happened? Bitcoin didn’t fall; it instead rose by 1.6%, reaching $86,994; the US dollar against the Japanese yen also suddenly surged, breaking through 157.

What is behind this abnormal trend?

**Expectations Have Already Been Priced In**

Actually, this rate hike news was no longer news a long time ago. Over the past month, the market had already been discussing it. Futures traders had priced it in advance, and various funds had already been adjusting their positions. The consecutive declines during those days? It was just everyone preemptively digesting this news.

When the actual event finally occurred, it didn’t have much impact. Veteran market players understand this logic: speculate on expectations, sell the facts. When the bad news everyone anticipated actually arrives, its destructive power has already been dulled.

**Liquidity Is Still Loose**

Don’t be fooled by Japan’s rate hike; the actual interest rates are still negative—and quite significantly so. The entire financial environment remains loose. Plus, with US policy support, global money is still available. Risk assets like Bitcoin are just right to thrive in this kind of loose environment.