Bitcoin's near-term upside remains constrained by persistent selling from investors sitting on losses, creating a fragile trading environment as markets enter a typically low-liquidity holiday period.

The Bank of Japan is expected to raise its benchmark interest rate to 0.75% on December 19, marking its first increase since early 2025, amidst ongoing inflation and a weakening yen. Analysts predict additional hikes in 2026 as the central bank navigates renewed monetary policy normalization under Governor Kazuo Ueda.

Asian equities advanced on Wednesday, supported by strong buying in technology shares, while oil prices surged more than 1% following an escalation of U.S. sanctions pressure on Venezuela.

Westpac analysts forecast the Reserve Bank of Australia will hold interest rates steady through 2026, with potential cuts now expected in early to mid-2027 due to resurging inflation and labor market concerns.