Hera_晓然
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Bloodbath! Interest rate cuts lead to a Bitcoin collapse, 85k lost, Ethereum drops below 3000! Three fatal blows crush the crypto market
The interest rate cut just materialized, and the crypto market is met with a "Black Monday"! Bitcoin plunged straight back to the 85k level, Ethereum fell below the 3000 mark, and mining stocks and concept stocks collectively plummeted over 10%.
This crash is by no means accidental, but rather the precise execution of three lethal blows: yen interest rate hikes, the Fed's flip-flop, and on-chain escape!
1. Yen interest rate hike: The 30-year old killer strikes
The Bank of Japan, which has been holding back for 30 years, strikes hard with a 97% probability of an interest rate hike. Historical iron laws do not lie: when the Bank of Japan raises interest rates, Bitcoin is sure to suffer a 20%-30% heavy blow! Global capital has been crazily leveraging to buy cryptocurrencies with low-cost yen, but now with soaring interest rates, arbitrage positions can only exit in tears. What's more deadly is that the expectation of an interest rate hike in 2026 and the looming sale of 550 billion ETFs means that the winter for risk assets is just beginning.
2. The Federal Reserve: A "hypocrite" that turns face after giving a sweet deal
So what if the interest rate cut has landed? How many more times can it be cut in 2026? No one dares to guarantee. This week's non-farm + CPI data is about to be revealed, and once employment data blows up or inflation resurfaces, the Fed may "mouth cut but heart not cut" at any moment, or even quietly start balance sheet reduction. The global central bank policies are completely chaotic, and the destructive power of inconsistent liquidity movements is harsher than apparent tightening!
3. On-chain mass escape: Miners cut losses, old investors flee
400,000 mining machines in Xinjiang have stopped, hash rate plummeted by 17%, and miners must sell coins or starve to death; OG old investors are accelerating their exit, with BTC ETF seeing a daily outflow of 350 million USD, market makers are scrambling to transfer assets. Anyone daring to hold Bitcoin during US trading hours is directly bloodied by 40%!
Summary: Yen arbitrage collapse + liquidity expectations shattered + collective escape of old miners = the inevitable result of the crypto market crash
In the short term, 85k is the line of life and death!
The Bank of Japan releases dovish signals + positive US economic data may welcome a rebound; but if negative factors continue to ferment, the 80k level may be in jeopardy!
The interest rate cut just materialized, and the crypto market is met with a "Black Monday"! Bitcoin plunged straight back to the 85k level, Ethereum fell below the 3000 mark, and mining stocks and concept stocks collectively plummeted over 10%.
This crash is by no means accidental, but rather the precise execution of three lethal blows: yen interest rate hikes, the Fed's flip-flop, and on-chain escape!
1. Yen interest rate hike: The 30-year old killer strikes
The Bank of Japan, which has been holding back for 30 years, strikes hard with a 97% probability of an interest rate hike. Historical iron laws do not lie: when the Bank of Japan raises interest rates, Bitcoin is sure to suffer a 20%-30% heavy blow! Global capital has been crazily leveraging to buy cryptocurrencies with low-cost yen, but now with soaring interest rates, arbitrage positions can only exit in tears. What's more deadly is that the expectation of an interest rate hike in 2026 and the looming sale of 550 billion ETFs means that the winter for risk assets is just beginning.
2. The Federal Reserve: A "hypocrite" that turns face after giving a sweet deal
So what if the interest rate cut has landed? How many more times can it be cut in 2026? No one dares to guarantee. This week's non-farm + CPI data is about to be revealed, and once employment data blows up or inflation resurfaces, the Fed may "mouth cut but heart not cut" at any moment, or even quietly start balance sheet reduction. The global central bank policies are completely chaotic, and the destructive power of inconsistent liquidity movements is harsher than apparent tightening!
3. On-chain mass escape: Miners cut losses, old investors flee
400,000 mining machines in Xinjiang have stopped, hash rate plummeted by 17%, and miners must sell coins or starve to death; OG old investors are accelerating their exit, with BTC ETF seeing a daily outflow of 350 million USD, market makers are scrambling to transfer assets. Anyone daring to hold Bitcoin during US trading hours is directly bloodied by 40%!
Summary: Yen arbitrage collapse + liquidity expectations shattered + collective escape of old miners = the inevitable result of the crypto market crash
In the short term, 85k is the line of life and death!
The Bank of Japan releases dovish signals + positive US economic data may welcome a rebound; but if negative factors continue to ferment, the 80k level may be in jeopardy!
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