How many people were stunned by this morning's big dump? Bitcoin, Ethereum, and DOGE all plummeted, with various unfavourable information flying around. But don't panic just yet; there are several key time points still ahead: December 1st for the end of tapering, December 3rd for the Ethereum network upgrade, and December 10th for the Federal Open Market Committee (FOMC) Meeting.

A few claims that have been circulating online need to be clarified:
What is meant by "sudden domestic crackdown"? That's old news being rehashed, already digested over the weekend.
Is there still "the resignation of the Fed Chairman"? That's pure nonsense, their term clearly lasts until May next year.

The real trigger is actually across the Pacific - the Bank of Japan.

At 7 a.m., the Bank of Japan suddenly announced an interest rate hike. Immediately afterwards, the yen exchange rate fluctuated violently, and the timeline of the big dump in the crypto world matches perfectly.

Why does the Japanese central bank's action cause the crypto market to shake three times?

In the past few years, Japan has been the world's cheapest "money tap", with low or even negative interest rates causing a massive outflow of funds into high-yield assets. Now, suddenly tightening the faucet, liquidity has instantly dried up, and Bitcoin, as a highly volatile asset, is the first to bear the brunt.

Now the question arises: Will the U.S. Treasury and the Fed just stand by? Will they intervene to coordinate and ask Japan to slow down its interest rate hikes?

If this "reservoir" is really going to continue draining, not just cryptocurrencies, but all global risk assets must prepare for winter.

To put it simply, the crypto world today is just an innocent bystander caught in the crossfire, with the real eye of the storm in Tokyo. Next, we need to keep a close watch on the game between Washington and Tokyo.