$BTC
The storm of interest rate hikes in Japan is coming! U.S. stocks and Bitcoin plummet together, and these three truths 90% of people don't understand!
A statement from the Bank of Japan has made the global financial community tense. Ueda Kazuo's remark about 'weighing the pros and cons of interest rate hikes' was directly interpreted by the market as 'countdown to interest rate hikes', with bets on a rate hike in December soaring to 90%. The two-year Japanese government bond yield has reached a 17-year high, U.S. stocks have crashed, and BTC has plummeted directly. Is this operation a doomsday warning or just a false alarm?
The bomb of Japan's interest rate hike is not exploding in the cryptocurrency market, but in the global tens of trillions of yen carry trade! For the past 30 years, Japan has had zero interest rates, and institutions have crazily borrowed yen to buy dollar assets, cryptocurrencies, and leveraged to maximize profit margins. This has been the invisible engine of global liquidity. Now that interest rates are to be raised, borrowing costs have increased, profit margins have shrunk, and they have to face losses from the appreciation of the yen. These people can only frantically close positions, and Bitcoin naturally gets caught in the crossfire!
But don't be swayed by panic! These three truths are key:
1. The Federal Reserve is injecting liquidity! While Japan tightens, the Federal Reserve will directly cut rates to 3.5~3.75% in December, and the world's largest source of liquidity has not been interrupted, so the cryptocurrency market will not lack funds.
2. The market has been expecting this! Japan has already raised interest rates three times in the past 21 months, and this is just the realization of expectations; most of the risks have already been digested in advance.
3. BTC has not crashed at all! After the plunge, it remains stable at a high level, and U.S. stocks have not broken key support, indicating that buying interest is still there. Panic is just a short-term emotional release.
In short, Japan's interest rate hike is not the end of the world, but a push for high-leverage players to exit, allowing the market to return to rationality. The real risk in the cryptocurrency market has never been a statement from the central bank, but rather your blind chasing of highs and heavy betting! In the current market, it's the speculators who are panicking, while the long-term holders are smiling—regulatory frameworks have already been established, and traditional capital is still entering the market. This pullback is nothing but a washout before a bull market.
Do you think this BTC plunge is a buying opportunity or a bear market signal? Will you reduce your holdings to hedge, or take this chance to increase your position?