📊 Market Watch

Investors are on high alert ahead of the next policy meeting at the Bank of Japan.

If the BOJ raises interest rates by 25 basis points as expected, it may already be too late to avoid market impact 🤯.

A rate hike would send shockwaves across global markets, with crypto not exempt from the downturn ⬇️

🚨 Market Reaction

The total crypto market capitalization took a hit of around 2.4%, while Bitcoin plummeted by $2,000, dipping below $90,000 💸.

US equities also suffered significant losses, with the S&P 500 down as much as 7% at the time of observation ⬇️

Forced deleveraging was triggered by rate hike expectations, resulting in liquidation of nearly $300 million in leveraged positions 🚫

87% of these long positions were betting on a rebound after Bitcoin consolidated above $90,000 for almost two weeks 💥

👀 Sentiment Shift

The crypto market has slipped into fear territory, reflecting a clear shift toward risk aversion 😬.

This raises the question of whether the upcoming BOJ meeting could become a catalyst for another sharp drawdown similar to October 🚨

Historical Context

A rate hike increases borrowing costs, potentially forcing capital out of US markets and crypto 📉.

With fading FOMO and clustered long liquidity, Bitcoin faces heightened liquidation risk if volatility accelerates ⚠️

$LUNA, $JUV , $SOMI .