Warning of a storm in the crypto circle! The Bank of Japan's interest rate hike triggers a huge shock in the market💥. The sharp drop in the market last night was surprisingly because of this!

Heavy news comes from the market, the Bank of Japan is very likely to raise interest rates by 25 basis points at the monetary policy meeting on December 19, pushing the policy rate to 0.75%, setting a record high since 1995!

As the yen interest rate rises, the yen exchange rate is bound to strengthen. Behind this, a large number of global arbitrage trades that rely on borrowing low-interest yen to exchange for other currencies and invest in risky assets will be forced to close positions. It should be noted that these arbitrage trades were previously the key funding ammunition for rebounds in crypto assets such as $BTC , $ETH .

With the rise in yen financing costs, the arbitrage space is compressed, and funds relying on yen leverage in the crypto market will be cut off. In the short term, this is likely to trigger forced liquidation of leveraged positions, and market fluctuations will be as severe as a roller coaster. High-leverage brothers, hurry up and optimize your positions in advance, set your stop-loss, and don't wait until the market cleans you up before you regret it💥

Last night, the market experienced a sharp drop, with blood flowing in the streets. Later, I will prepare some strong coins suitable for bottom-fishing as a recovery plan. Brothers and sisters who want to follow the strategy, let's go to 币安聊天室 together to make a fortune! #美SEC推动加密创新监管 #美联储重启降息步伐 #加密市场观察