$BTC $ETH The Bank of Japan shifts to interest rate hikes
Its impact far exceeds the "magnitude" itself— the real key lies in,
the global tide of the lowest cost of funds in over twenty years is about to recede.
The market seems to underestimate this point
A large amount of leveraged funds rely on nearly zero-cost yen
Flowing into high-risk assets such as U.S. stocks and cryptocurrencies
Behind this is not confidence in fundamentals, but an inertia dependence on cheap funds.
Once the yen strengthens due to interest rate hikes, carry trades will be forced to close
This means that funds will systematically withdraw from risk assets, creating selling pressure
This is not a fluctuation in sentiment, but an inevitable reversal of trading structure.
Current market valuations are not low, and leverage is also at a high level.
When the consensus that "funds are always cheap" is broken, adjustments are often severe and sudden.
History shows that the shift itself is more impactful than the level of interest rates.
For cryptocurrencies, volatility amplification is almost inevitable.
High leveraged positions will be the first to bear the brunt, altcoins usually come under pressure first, and mainstream coins will also find it hard to stand alone.
Declines are often not due to problems with the project, but because liquidity is receding.
The Bank of Japan's interest rate hike may become a key switch for risk release.
At the turning point of the trend, risk management is far more important than directional prediction.

