The Bank of Japan announced an interest rate hike, and we in the crypto circle switched directly from 'hibernation mode' to 'party mode,' especially those small coins that usually go unnoticed, each one surging as if injected with adrenaline. The scene was so crazy that I almost thought I misread the candlestick chart!
First, let me provide some background for those who didn't catch the rhythm: Yesterday (December 20), Japan's interest rate hike policy was officially implemented. This matter can be said to affect global liquidity on a large scale, and on a smaller scale, it directly injected a 'stimulant' into the crypto market. But can you believe it? This time, the main players in the celebration are not mainstream coins like Bitcoin and Ethereum, but a bunch of altcoins with all sorts of names, each with a more outrageous increase than the last!
I have compiled a few of the craziest cases; feel the level of magic here: a coin called LIGHT directly surged over 70% within 24 hours, with the price now at $2.38. Even more exaggerated is that the daily trading volume reached $68.8 million. It's worth noting that this coin's previous daily trading volume was only in the millions; there is also a small coin called SOPH, priced at only $0.01644, a typical 'mosquito leg' coin, yet it also rose 40%, with a daily trading volume brutally breaking $116 million, more lively than many mainstream altcoins; even a meme coin with a simple and crude name '67' rose 38%, priced at $0.028, with a trading volume of $11.49 million; the other two, RESOLV and WET, weren't left behind, rising 36% and 35% respectively, both breaking $100 million in trading volume, with the former at $161 million and the latter at $129 million.
At this point, some brothers are bound to ask: 'Can we chase this wave of rising? Why did Japan's interest rate hike particularly boost altcoins?' As someone who has been watching the market for 8 years, let me share some insights; don't get swayed by market emotions!
First of all, the essential nature of this surge in altcoins is 'short-term speculation driven by liquidity', not an improvement in fundamentals. After Japan's interest rate hike, there will be a short-term reallocation of funds in the global capital market, and some hot money chasing high returns will flow into the crypto market; and what hot money loves most is altcoins—small market cap, low cost of lifting the price, and even a slight influx of funds can lead to significant increases. This is also why mainstream coins have not moved much but small coins are in a frenzy.
Secondly, be wary of the trap of 'driving up and dumping'. Look at those small coins that have skyrocketed; most of them lack actual application scenarios, the team background is vague, and they purely rely on concept speculation. Coins like SOPH, which have a very low price, may seem scary with a 40% rise, but the actual volatility cost is extremely low, and the main players can easily attract retail investors to take over by driving up the price, then quietly dump their holdings, leaving ordinary investors stuck in the end. I have seen too many 'one-day tour' markets where today it skyrockets, and tomorrow it directly hits the limit down; brothers who chase high prices are likely to become the 'stool pigeons'.
Additionally, here’s a key piece of information: Recently, the U.S. non-farm payroll data exceeded expectations, which means there may still be variables in the Fed's future interest rate hike path; the global expectations for liquidity easing have not fully materialized. The current frenzy in the crypto market is more like 'emotional release under short-term news stimulus', and its sustainability is highly questionable. My personal view is: at this stage, definitely do not chase any small coins that have surged; those holding such coins can take advantage of the high prices to reduce their positions and lock in profits; brothers looking to invest should still return to mainstream coins or quality projects with actual landing scenarios, patiently waiting for a pullback before entering.
Lastly, let me say something from the heart: the crypto market is never short of opportunities, but what it lacks is rationality. This wave of changes brought by Japan's interest rate hike is more like a wake-up call to the market—once liquidity loosens, the elasticity of the crypto market is still very large, but the risks also increase accordingly.
Do you hold any of the coins that have surged this time? Are you planning to take profits or continue holding? Or how long do you think this market trend can last? Feel free to leave comments and discuss in the comment section, follow me@链上标哥 , and don't get lost! In the future, I will continuously track the impact of Japan's interest rate hike on the crypto market, as well as the layout opportunities for quality projects. Let's stay clear-headed in this crazy market and make the money we should make!
