Making some predictive analysis of the current cryptocurrency environment
📅 Key Time Point Analysis
Based on the above events, the market will face different dominant logics in the short and medium term:
1. Short term (next 1-2 months): Bank of Japan interest rate hikes and liquidity challenges**
This is the most clear and critical risk point in recent times. The Bank of Japan is likely to decide on interest rate hikes at the meeting on **December 18-19**. This action will end the long-standing era of 'yen carry trades'—where investors borrow low-cost yen to purchase high-yield risk assets like Bitcoin. Once Japan raises interest rates:
Liquidity tightening: Global cheap yen funds will flow back, directly withdrawing liquidity from the cryptocurrency market.
