The Bank of Japan suddenly "draws its sword", raising interest rates for the first time in 28 years! Is the "water" in the crypto world about to be drained?
Crypto friends, something big has happened! The Bank of Japan, which has been crazy about "injecting liquidity", is suddenly going to tighten the faucet—interest rates may rise in December, hitting a 28-year high! Many people think this is just a Japanese issue, what does it have to do with our crypto world? Wrong! This could be another scythe for the global market's "draining of liquidity", and this time the method is extremely covert!
You see, Japan has always been the cheapest "purse" in the world, with zero interest rates for so many years, hot money has been running everywhere. Now that it suddenly wants to raise interest rates, what does it mean? It means that the cost of borrowing yen for global speculation is going to soar! It’s like a reservoir; the United States is draining water, and now Japan is also starting to close the sluice. Although the water won't dry up instantly, the trend of declining water levels will become increasingly evident. The crypto market, especially Bitcoin, as the "number one internet celebrity" in the global liquidity feast, is the most sensitive to this change.
What does this mean for retail investors?
Don’t treat the "liquidity bull market" as a permanent script anymore! Over the past two years, many have gotten used to the mentality of "if it drops, just hold on; it will eventually come back up" in a liquidity bull market. But in the next six months to a year, the theme of the macro environment will be "draining liquidity" and "volatility". Wild fluctuations will be more frequent, and relying solely on faith to hold positions could be very uncomfortable.
Positioning and cash flow are key! In the potentially coming period of heightened volatility, maintaining your base positions and surviving is more important than making quick money. Ensure that you have a portion of your positions that are "never to be sold", long-term belief positions, and another portion of flexible funds that can pick up quality assets in extreme panic situations. Don’t just go All in at every opportunity!
True veterans are not those who predict the wind and rain, but those who learn to have a boat to row and a net to cast, regardless of sunny or rainy days. Pay attention to the duality, enter the room, and I will teach you: when global "water" decreases, which track is most likely to swim against the current? #比特币VS代币化黄金 $BTC
