This Wednesday, the triple witching day + the Bank of Japan's interest rate hike will bring a dual storm, and Bitcoin may face a massive shock. How can retail investors escape?

As we enter the second half of this week, there are two major events that require special attention. Together, they may create significant turbulence.

The first event is this Friday's triple witching day.

This key point occurs only four times a year and means that a large number of stock index futures, stock index options, and stock options will expire simultaneously. Historical experience shows that this usually leads to a sharp increase in market trading volume, significantly enhanced volatility, and the price movement tends to become very tortuous. Market sentiment can also be easily exaggerated during the period around the triple witching day, and the uncertainty of short-term operations will greatly increase.

The second event is the Bank of Japan's interest rate decision.

The Bank of Japan will announce its latest monetary policy decision this Thursday. The recent market decline has partially reflected concerns about a potential interest rate hike in Japan. The core logic here is that Japan has maintained ultra-low interest rates for a long time, making the yen the cheapest financing currency globally. A large amount of international capital borrows yen, exchanges it for dollars, and flows into U.S. stocks, technology stocks, and even high-yield risky assets like Bitcoin.

Once the Bank of Japan shifts to raising interest rates, leading to a stronger yen and increased borrowing costs, this portion of arbitrage trading funds may be forced to close positions, selling risky assets to repay yen loans, thus creating a chain of selling pressure. This explains why the Nikkei index and Bitcoin fell together at that time.

In the coming days, we will face both the technical impact of the triple witching day and the macro fundamental impact of the Bank of Japan's decision. With these two factors resonating, it is highly likely that the market will experience repeated fluctuations.

Niu Ge's strategy is very clear:

During periods of increased uncertainty, the primary task is to manage risk rather than chase profits. It is recommended that everyone strictly control their positions and avoid heavy bets during extreme volatility. Short-term trading must set stop-loss orders, with a focus on observing more and acting less. First, ensure that you can survive the turbulence before seeking development.

I am Niu Ge; when the market is complex, clarity is even more necessary. We prioritize stability. #美国非农数据超预期