Today's big dump in the market is not much related to certain personnel changes. If the Fed chair were to change and the interest rate policy were to be fully pumped, the market would have already To da moon.

The core reason is the Bank of Japan - they raised interest rates.

The matter of the Japanese yen's interest rate hike has a greater impact than many people imagine. Japan has maintained ultra-low interest rates for a long time, and many global institutions have been playing the same game: borrowing low-cost yen and then investing it into higher-yielding assets, with the cryptocurrency market being one of the important pools of funds.

Now Japan has suddenly raised interest rates, causing borrowing costs to rise instantly. What will these institutions do? Sell off cryptocurrencies, liquidate stock positions, and convert money back to pay off yen debts. This large-scale capital inflow has directly slammed the brakes on the market.

So don't just focus on the news from the US; Japan's monetary policy can also stir the entire risk asset market. Once arbitrage trades reverse, the chain reaction comes quickly and violently.

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OldLeekNewSickle

· 10h ago

Oh, the Bank of Japan's move has directly reversed the arbitrage mechanism, and we players can hardly react.

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shadowy_supercoder

· 13h ago

Wow, Japan's move is incredible, the Arbitrage trading with a Reverse directly gives us a headshot, this is the real Black Swan.

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NotFinancialAdvice

· 13h ago

Oh no, it turns out Japan is causing trouble, no wonder the bloodbath is so outrageous today. It's another reverse arbitrage trade, this chain reaction really caught people off guard. So saying that just following the Fed is enough is nonsense; when the Bank of Japan moves, the whole world has to shake. Indeed, institutions borrowing yen to invest in the crypto world must be crying now; with the interest rate spread gone, they have to rug pull. Once Japan raises interest rates, it feels like all risk assets can't survive. We should have been paying more attention to Japan; instead, everyone was focused on the U.S., too naive. The arbitrage game is over; now it's time for a massive close all positions.

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gas_fee_therapist

· 13h ago

Damn, it's another trick from Japan, we should have been paying attention to the Central Bank of Japan's movements. --- Once the yen arbitrage reverse is triggered, the entire market will suffer along with it, this wave is indeed a bit niche. --- So for those of you still watching the Fed news when the market is falling recently... it's like a typical misunderstanding. --- Institutions borrowing yen for Cryptocurrency Trading must be panicking now, trapped by arbitrage, they deserve it. --- Now I understand, the entire upstream and downstream of the crypto world is completely controlled by a decision from the Central Bank of Japan.

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DaoTherapy

· 13h ago

Ah, I knew something would happen in Japan long ago, and they just realized it now? The arbitrage positions blew up violently. --- No one really took the yen's interest rate hike seriously, and now it's all coming down hard, it's truly ridiculous. --- So, what's the use of just focusing on the Fed? Once the Bank of Japan moves, everyone runs. This wave has been a lesson learned. --- Those who borrowed yen to play arbitrage are probably crying now, recovering losses is still a long way off. --- Once the chain reaction is triggered, it can't be stopped. Japan's cut was too severe.

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LightningAllInHero

· 14h ago

Oh wow, Japan's move is really clever, the carry trade reversed and directly caused dumping. --- While we are still studying the Fed, Japan's Central Bank has already taken action. --- Now I understand, it's not that our coins are not good, it's purely that big funds are repaying debts. --- The yen's Interest Rate can indeed penetrate the entire market, I didn't think of it before. --- Arbitrage trading in reverse is really ruthless, no wonder it fell so quickly. --- Really, a bunch of institutions are repaying yen debts, and our coins are taking the hit. --- It feels like this move by the Central Bank of Japan is even more intense than the interest rate cut expectations. --- The carry trade has collapsed, and encryption is the first to suffer, which is reasonable. --- I have to say, from Japan's perspective, it really explains a lot of things. --- Learned again, it turns out Japan's Interest Rate can really stir up a storm.

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