Attention all coin friends! Today the market experienced significant fluctuations, and Bitcoin suddenly pulled back sharply. Many people only see the price fall, but they have not noticed the real driving force behind it—the Bank of Japan has revealed signals that it may raise interest rates in December.

You might ask, what does Japan's interest rate hike have to do with the crypto market? It matters a lot! The yen has long been an important tool for arbitrage trading in the global financial market. Over the years, a large number of institutions have borrowed low-interest yen to allocate various assets, and cryptocurrencies are one of them. Now that the Bank of Japan is signaling an interest rate hike, borrowing costs will rise immediately, and those funds will have to sell assets to pay off debts. The USD/JPY has recently fluctuated between 155 and 160, and this range itself indicates that Japan is not joking this time. The direction of global liquidity is changing.

What should retail investors do now?

First, don't rush to buy the dip. In an environment of tightening liquidity, a decline often doesn't end in just a day or two; wait until the panic sentiment is fully released before making any decisions.

Second, keep a close eye on the USD/JPY exchange rate trend. If it really falls below the key level of 155, it indicates that the Bank of Japan will take more aggressive actions. If you need to reduce your positions for risk aversion, don't hesitate.

Third, keep enough cash on hand. A bull market requires ample funds to drive it, and at this stage, cash is king. Wait until the market truly falls through; that will be your good opportunity to pick up chips.

The market never disappoints those who are patient. Some see a crisis, while others see a turning point. When the tide goes out, you will see who is well-prepared and who is swimming naked. In this restless circle, those who can laugh last are always the hunters who respect market cycles and maintain rational thinking. In this wave of market trends, we need to learn to hide, but we also need to learn to act at the right moment!