When the Bank of Japan raises interest rates, Bitcoin crashes. When the US stock market opens, Mainstream Tokens big dump.

The underlying logic is actually very simple —

For the past decade or so, Japan's interest rates have long remained in the zero or even negative range, making it the cheapest pool of funds in the world located in Tokyo. A large number of institutions (mainly Japanese pension funds and hedge funds) have been playing this game:

Step 1: Borrow a large amount of yen at a low cost (interest close to zero)
Step 2: Exchange for US dollars
Step 3: All in on high-yield assets — tech stocks, emerging markets, cryptocurrencies... go where the returns are high.
Step 4: Earn a passive income of 5%-10% each year from interest spread + asset appreciation, it's simply a risk-free profit.

This is the famous "Yen Carry Trade", with a market size conservatively estimated at hundreds of billions to over a trillion dollars.

But now, the Bank of Japan has suddenly raised interest rates. Even if it's just a symbolic 0.25%, the entire game rules have instantly collapsed:

• The cost of borrowing has surged, and the original interest rate spread advantage has completely disappeared, even resulting in an inversion.
• The yen exchange rate has rebounded crazily (last year it soared from 161 to around 140 at one point)
• The debt of 100 yen borrowed at first now needs to be repaid with 110-120 to balance the account, and the paper loss is staggering.
• All participants panic collectively: frantically sell Bitcoin → crash the US stock market → rush to buy USD → exchange for JPY to pay off debts!

Hundreds of billions of dollars are being withdrawn simultaneously, and assets like Bitcoin, which lack fundamental support and are entirely driven by liquidity, simply cannot withstand it.

A wave of collective panic is inevitable.