The whole internet is shouting that 'Japan's interest rate hike is ETH's last chance,' but no one tells you: What if it falls more than expected? How much should it drop before it's worth buying the dip? Today, I'm going to reveal my ultimate strategy, whether you're a beginner or an experienced trader, you'll have a solid understanding after reading this!
First, understand the underlying logic: The reason Japan's interest rate hike has such a huge impact is that the yen is a major funding currency for arbitrage trading globally. An interest rate hike will increase borrowing costs, leading investors to sell off risky assets to repay debts, with the crypto market being the most affected. Historical data shows that after Japan's interest rate hike in March 2024, BTC fell by about 23%, and after the rate hike in January 2025, it fell by more than 30%, with ETH's decline being similar. However, there is a key difference this time: the market has already priced in the expectation of the rate hike, and the U.S. monetary environment is becoming more accommodative, which will offset some of the tightening effects.
My ultimate strategy: adopt the 'funnel type position building method'. Initially allocate 10% of funds near $3100, if it drops to $3000 increase the position by 15%, at $2900 increase by 20%, at $2800 increase by 25%, and at $2700 increase by 30%. At the same time, set a breakeven stop-loss to avoid floating profits turning into floating losses. Personally, I believe that after this interest rate hike, the drop in ETH is likely to be between 10%-15%, and there will not be a 'bargain price' situation, but this is indeed the best layout window before the end of the year. Follow me @男神说币 for real-time live interpretations on the day of the interest rate decision, teaching you to accurately grasp entry points! #BinanceABCs $BTC
