There is one more thing: during this market, definitely do not learn to hold like a buddy!!!
This Friday is the Triple Witching Day, which happens only four times a year.
At this time, both options and futures expire, leading to a surge in market trading volume, and volatility will also increase, making it difficult for the market to remain stable, while emotions can easily swing wildly.
Macro-wise, pay special attention to the Bank of Japan.
On Thursday, the interest rate decision will be announced. In fact, the previous wave of declines has already priced in some expectations of interest rate hikes.
At that time, not only Bitcoin but even the Japanese stock market also plummeted together. What the market is really worried about is whether the yen carry trades will be forced to close out, triggering a chain reaction like last July and August.
Japan has maintained near-zero interest rates for a long time, making the yen the cheapest "borrowing tool" in the world.
Many people borrow yen to exchange for dollars, and then buy US stocks, tech stocks, or even high-volatility assets like Bitcoin. This is a typical arbitrage play.
But there is a premise to this play:
The yen must remain weak.
Once the yen starts to strengthen, the cost of borrowing will rise, and those seemingly attractive leverages will turn into burdens, forcing funds to cut positions and pay back.
In this process, what is often sold off is not the yen itself, but various risk assets held.
So the next few days are actually two risks stacking together:
One is the technical extreme volatility brought by the Triple Witching Day, and the other is the potential impact of the Bank of Japan's policy on global risk assets.
Short-term uncertainty is very high, and the trend can easily sweep back and forth. It is recommended that everyone manage their positions well and always prioritize risk management.
