Brothers! The crypto market may drop again next week 🚨 Japanese yields are soaring, will #BTC wait for QE to save the market? But the big opportunity is ahead!
Take a look at this weekly chart: BTC crashed from its 2021 peak, hit the bear bottom in 2022, then corrected in 2024-2025, and now it's fluctuating around 88K. The historical pattern is repeating—after the Bank of Japan raised interest rates, the crypto market had to "kneel" first!
The core reason: Japanese government bond yields are skyrocketing!
This week, the yield on Japan's 10-year government bonds rose to over 2.02%, the highest since the 2008 financial crisis (when it was around 1.5%). The BOJ just raised rates to 0.75% on December 19 (a nearly 30-year high). Historically, after similar rate hikes, BTC's reaction the following week was:
March 2024 hike: down ~23%
July 2024 hike: down ~26%
January 2025 hike: down ~31%
This time, BTC barely moved, stabilizing at 85K+, but a further drop of 10-20% next week seems reasonable, possibly even a short-term bottom.
But this time is different: BTC won't immediately reach new highs.
The 4-year cycle is still ongoing: post-halving correction phase, short-term rebounds are possible, but there may be another wave later. A true bottom requires the Federal Reserve to restart quantitative easing (QE printing)!
Why might the Fed intervene to save the market?
Japanese yields soaring → Global sell-off of risk assets → US bond yields also pushed higher → US debt pressure explodes. Historically, when bond yields rise too quickly, central banks must intervene:
Policy reversal
Massive liquidity (QE)
Just like in 2020-2021, after global central banks eased, the crypto bull market took off. Now multiple central banks have loosened, and if US bonds spiral out of control, the Fed's money printing machine will restart, and once the liquidity flood arrives, BTC and ETH will soar!
Short term (1-2 weeks): large fluctuations, support at 88K-85K, if it breaks, it might go to 80K.
Medium to long term (2026): liquidity returns, bull market restarts, money printing benefits the most!
I'm not rushing to go all in, waiting for the market to reset—those who bought the bottom after the 2020 pandemic crash have all made it. Currently, it seems like waiting for more drops, or try a small position?
