📉 MARKET DUMP: The BOJ & Options Expiry Are Squeezing Liquidity
Here's what's happening 👇
1. 🇯🇵 BOJ Rate Hike Shock
· Nikkei reports a potential hike at the Dec 18–19 meeting — earlier than priced in.
· Japanese bond yields spiked immediately.
· Result: Global risk-off move across #Bitcoin & altcoins.
2. 💸 The "Japan Liquidity" Effect
For years,Japan's low rates fueled global carry trades.
A BOJ hike = cheap liquidity dries up = markets unwind fast.
History shows crypto often sells off sharply when BOJ tightens.
3. 🗓️ Dec 19 Quarterly Options Expiry
Trillions in stock& ETF options expire this week.
Large expiries often create downward pressure before settlement.
⚡ What's Next?
· If BOJ hikes: Flash crash risk rises, but may set up a reversal.
· If BOJ holds: Possible relief rally into year-end.
⚠️ Warning: BOJ reportedly planning more hikes in 2026 — liquidity could keep tightening.
