Are you still fixated on those outdated conspiracy theories during today's big dump? What regulatory crackdowns and rumors of high-level resignations? Wake up! The real powder keg that ignited the market is hidden across the Pacific—Japan's Central Bank may be getting serious.

Just after 7 a.m., a piece of news exploded: Japan may be bidding farewell to the era of negative interest rates. As soon as the news broke, the yen surged, BTC plummeted, and ETH followed suit, causing tens of billions of dollars to evaporate from the entire network in an instant. With timing so precise, what is there to doubt?

The reasoning is actually not complicated. For more than a decade, Japan has been like a vault with its doors open, borrowing yen at zero cost to speculate—speculating on cryptocurrencies, U.S. stocks, and everything that can double in value. Now this door is about to close, and it may even start to pull money back. Once the cost of funds rises, who would dare to touch these high-volatility things?

The trouble is that this bomb is also resting on three wires: the "high interest rate environment" tone from the Federal Reserve hasn’t eased; the crypto market went crazy recently, with leverage pushed to the ceiling, and a slight tremor leads to a chain reaction; plus, the global regulatory knife is still hanging without falling. With three heavy mountains pressing together, it would be strange if it doesn’t collapse.

Is anyone still fantasizing that the United States will step in to advise Japan "don’t rush to collect water"? Spare me. The primary duty of every country's Central Bank is to save its own economy and will not take the blame for someone else's bubble.

The storm is far from over. For friends still in the market, here are three pieces of advice: First, lower your leverage; your life is more important than profits; Second, don’t be swayed by all the noise online; focus on the actual actions of the Federal Reserve and the Bank of Japan; Third, be mentally prepared for continued turbulence; the real bottom is never reached in just one day.

Did you hold up this time? Do you think this is a correction in a bull market or is a turning point coming? Share your thoughts in the comments.

BTC5.67%

ETH7.08%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
7
Repost
Share

Comment

0/400

NeverVoteOnDAO

· 19h ago

When the Bank of Japan takes action, the whole world goes down with it. This logic is really something. --- Leverage is at its limits but you want to buy the dip? What's the point, brother? --- I just want to know who still dares to increase the position at this level, that's some commendable courage. --- If the negative interest rate era is over, then all the profits made through arbitrage must be given back. --- The Fed and the Bank of Japan are probably thinking about how to shift the blame now, haha. --- With three major pressures at once, I, as a small retail investor, really can't hold on much longer. --- This wave of adjustment feels endless, where exactly is the bottom? --- After listening to so many analyses, the old saying still holds true — if you don't use leverage, you'll be fine. --- The appreciation of the yen was something we should have seen coming, who can we blame? --- When the crypto world goes crazy with rises, it has to crash; this rhythm is way more surreal than the stock market. --- Those still calling it a bull run adjustment, I really admire your perseverance. --- Lower leverage, lower leverage, easy to say but hard to do, everyone.

View OriginalReply0

BlockBargainHunter

· 19h ago

The issue of Japan collecting water... has long been apparent, but no one is listening.

View OriginalReply0

Frontrunner

· 19h ago

The Bank of Japan's move is indeed remarkable.

View OriginalReply0

PonziWhisperer

· 19h ago

The Bank of Japan's move directly got me liquidated, damn it.

View OriginalReply0

ForkLibertarian

· 19h ago

The Bank of Japan is tightening, and we all have to bear the brunt. --- The moment the yen appreciated, I knew it was over; the era of borrowing money for Cryptocurrency Trading is really coming to an end. --- With three major mountains piled together, this time it's not just an adjustment; it's a reshuffle. --- Is anyone still hoping the Fed will save the market? Wake up, central banks around the world are just sweeping their own doorsteps. --- Leverage is something that makes money quickly in good times but can be deadly when it falls; if it needs to be reduced, it has to be reduced. --- I was stunned watching the live broadcast during the drop at 7 o'clock; billions of dollars just disappeared like that, it's too crazy. --- Don't be misled by those conspiracy theories; just look at where the money flows. --- How long did it take to truly hit the bottom? Nobody knows, just that we are not there yet. --- If the people in the market can survive this time, that's a win; let's put profits aside for now. --- Japan's move has directly burst the entire low-interest Arbitrage bubble.

View OriginalReply0

MetaverseVagabond