With Japan and the United States reaching a new trade protocol, the Nikkei 225 index rose significantly by 3.7%. However, investors are more focused on the possible interest rate hike decisions of the Central Bank of Japan and their impact on the Crypto Assets market.

The market generally expects the Bank of Japan to raise interest rates by 25 basis points in early 2025. This move may cause short-term volatility in the price of Bitcoin (BTC), but the long-term impact remains to be seen. From a technical analysis perspective, BTC is currently at a key support level near $115,080, and whether this level is broken or held will determine the short-term trend.

If BTC can hold the support at $115,080, the next target price may be $116,000. Conversely, if it falls below this support, it may drop to around $114,000. However, it is worth noting that a single interest rate hike by Japan may have limited impact on BTC; what really needs attention is the synchronized tightening policies globally.

In the long run, Bitcoin's attributes as "digital gold" may be highlighted in an environment of rising sovereign bond yields. Although it may face pressure from capital diversion in the short term, its status as a tool for hedging against inflation and economic uncertainty may strengthen.

Investors should closely monitor the Bank of Japan's policy meeting in August, which will be a key juncture for determining the future direction of monetary policy. At the same time, it is important to pay attention to the policy trends of other major central banks around the world, as their decisions may have a broader impact on the entire Crypto Assets market.

In this uncertain market environment, investors need to remain vigilant, manage risks effectively, and adjust their strategies in a timely manner according to market changes.