December 19, 2025
Recently, the market is generally worried about the impact of Japan's interest rate hike. Objectively speaking, the interest rate hike will have a certain impact on the liquidity, especially since this is an interest rate hike after Japan's long-term low rates, and the specific destructive power is unpredictable. However, in my opinion, perhaps the fear of the unknown has deepened everyone's pessimistic expectations, because the U.S. interest rates have been declining, and Japan's interest rate hikes did not just start this time. I actually think there is no need to worry too much.
In fact, whether it is an interest rate hike or cut, the impact on the market takes time to manifest, and in the short term, it is more influenced by emotions. Of course, in my view, the biggest problem in the cryptocurrency space right now is not liquidity, but rather insufficient market confidence. There is money available, but simply no coins that people want to buy. As for the interest rate hike in Japan, the most direct impact is on the dollar against the benchmark assets, while cryptocurrencies have a buffer.
Regarding the market, there have been fluctuations in the past few days with noticeable increases in volatility. Prices have indeed dropped a bit, but this is more concentrated in altcoins. As I said before, it's better to avoid altcoins. Looking at Bitcoin, the price is still around 90,000, and the recent decline in weaker ETH and BNB has clearly slowed down.
It's not that the market is about to rise; the liquidity and confidence in this market are too difficult. However, the lack of confidence in the market is worth our serious consideration of whether it is a good opportunity to build positions. Choosing mainstream assets that can be held long-term means that if they fall further, we shouldn't be afraid. Of course, if position management is reasonable, a portion of the funds can be reserved for potential further declines.
Thank you for your attention and likes.
