The current market is a tug-of-war between bulls and bears.
🇺🇸 The Federal Reserve's interest rate cuts release liquidity, benefiting risk assets;
🇯🇵 The Bank of Japan may raise interest rates on December 19, which dampens the market.
Bitcoin and the entire cryptocurrency market are caught in the middle, being pulled back and forth.
On one side is the narrative of interest rate cuts,
on the other side is the possibility that yen arbitrage may be forced to close positions.
Historically, after the Bank of Japan raises interest rates, BTC has experienced a 20%–30% pullback, and with current leverage not low, the market is naturally tense.
