Thirty years waiting for a moment! The Bank of Japan is set to raise interest rates tomorrow, and the cryptocurrency market may face a huge shock!
The black swan that the entire market has been waiting for is truly coming. The Bank of Japan is almost certain to raise interest rates to the highest level in 30 years. Don't underestimate this mere 0.25%; it is a withdrawal signal for the global cheap capital ‘base camp’ and will directly impact the granary of the cryptocurrency market.
In my opinion, the impact of this matter on our crypto market has already started to ferment. Why has the cryptocurrency market been falling for the past month, and why is the market sentiment ‘extremely fearful’? Besides the situation with the Federal Reserve, it is directly related to global capital smelling the wind of Japan's interest rate hike in advance. Now the ‘shoe’ is about to drop, and it crucially depends on what Bank of Japan Governor Kazuo Ueda says at the press conference.
If it’s a moderate rate hike and he says to take it slow in the future, it might be considered ‘bad news fully priced in,’ and in the short term, it may actually ease the tension that has been tightly wound.
But if he hints that there will be a strong increase next year, then we need to be cautious. This will drain global liquidity, and emerging markets will be the first to bear the brunt, while cryptocurrencies, as the ‘vanguard’ of risk assets, will find it difficult to rebound quickly in the short term.
What should players do: Don’t rush to invest all at once. Hold your core positions steady. Prepare your bullets. In light of recent market trends, try to focus on short positions and avoid going against the trend. Our positions are small, with low tolerance for errors; preserving capital is the key!
Tianji’s strength is not about boasting or making empty promises, but teaching you practical survival skills. Follow Tianji, and fans who want to keep up can find Tianji Village, where Tianji announces entry and exit points every day!
After this meeting, there will be subtle changes in the flow of global capital. Want to know which crypto assets, besides Bitcoin, may become the new favorites under this change? Follow me, and in the next episode, let’s talk about those sectors that might quietly make profits.
