The big dump last night left many people stunned. The bloodbath on December 1, 2025, appears to be a technical collapse on the surface, but the root cause is hidden in Tokyo and Washington.

Let's first talk about Japan. The recent remarks by Bank of Japan Governor Ueda Kazuo basically imply that there might be an interest rate hike in December. This is not a trivial matter. Over the past few years, how many institutions have relied on near-zero cost yen loans to convert them into dollars and invest in high-risk assets like Bitcoin? Now that the yen is likely to increase interest rates, the cost of borrowing will rise sharply, and this trillion-yen scale of funds must be withdrawn urgently. Just think about it, with such a large volume of selling pressure being released at once, how can the market not crash? This is the real logic behind the flash crash.

Looking at the situation in the United States. Trump suddenly announced that he has already chosen a new Federal Reserve chairman, coupled with the rampant rumors that Powell might be "fired" (although there is no solid evidence yet), the entire market is in a panic. Is the steering wheel of monetary policy about to change hands? This kind of uncertainty is the most deadly, and funds simply do not dare to stay and wait.

But when you calm down and think about it, this round of big dump is essentially not a bull-bear transition, but a forced liquidation of leverage. Every time the yen interest rate turns, global assets need to be revalued again. Those high-leverage yen arbitrage positions are kicked out, and the market structure is actually healthier. Looking back at historical data, you'll find that this kind of panic fall often creates a gold pit, and institutions like to quietly build positions at this time.

What should we do now? Don't panic, stay rational in your operations: First, stay away from high leverage; Second, if core assets like Bitcoin and Ethereum show significant falls, consider entering the market in batches; Third, keep a close eye on the Bank of Japan's meeting in December, as that will be a key turning point.

The market always oscillates between emotion and rationality. This time, are you the one forced to sell at a loss, or the sniper ready to buy the dip?

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MevSandwich

· 15h ago

The interest rate hike in yen is really a big weapon. Once the trillion arbitrage positions start to panic, no one will be able to escape. Those who cut loss have already done so; now we just have to see who can pick up the golden pit. Powell's situation hasn't settled yet, and this wave of volatility may not be over. I won't touch leverage; I will enter a position in Bitcoin in batches, just waiting for the Japanese Central Bank to give a clear statement in December. In times like this, it's actually a good opportunity for institutions to build a position; we retail investors just need to follow the rhythm. The yen has gone through this many times before; the market has always been this way, jumping back and forth. Those who are panicking are just inexperienced; stay calm and watch for opportunities.

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CommunityJanitor

· 15h ago

As soon as the yen raises interest rates, trillions of funds pull out, this logic is indeed absurd --- Both Japan and the Fed are fighting, and we have to foot the bill --- Gold pit? I just want to know where the bottom is, those who dare to catch the falling knife are probably already numb --- Those with high leverage are probably regretting it now, damn arbitrage positions --- Wait, is this really a leverage cleanup and not a crash? Why do I feel differently --- Entering the market in batches sounds simple, but who knows where the next knife will cut --- Keep a close eye on that meeting of the Bank of Japan? Forget it, we might die before it even happens --- The market is jumping between emotion and rationality, while I'm jumping between Cut Loss and bankruptcy --- Institutions build positions for themselves, while retail investors just have to Cut Loss, right? --- This time, those who avoided losses may have earned more than those who bought the dip.

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UncleWhale

· 15h ago

The interest rate hike of the yen has really exploded, and the moment the trillion-yen arbitrage positions rug pulled, it was destined to collapse. Buying the dip or cutting loss, let's see who is faster this time. As soon as Ueda speaks, global funds have to run. To put it bluntly, it's just leverage cleaning; it won't kill you, just hurts. What happened with Powell is too outrageous; uncertainty is the biggest killer. The golden pit is right in front of us; the key is whether there is still money in the pocket. How many people got liquidated in this wave? I just want to watch the changes quietly. The Bank of Japan's December meeting is really crucial; we need to keep a close eye on it.

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TokenomicsDetective

· 15h ago

Japan's interest rate hike has long been written on the wall; the key is that those leveraged traders are still sleepwalking. --- Once again, it's the yen arbitrage getting liquidated; this play has to be replayed every few years. --- Wake up, the technicals are just a smokescreen, the real knife is in the Central Bank's hands. --- Powell being replaced as chairman? This rumor is deadlier than the fall itself. --- I want to buy the dip, but I'm afraid it will get dumped again. --- Institutions are building positions while you are cutting losses; the difference lies in this mindset. --- The collapse of the yen arbitrage was bound to happen; the market is just self-correcting. --- Gold pit? Let's wait and see what the Central Bank meeting in December says. --- Bitcoin's current fall isn't unwarranted; leverage needs to be cleared. --- Staying away from high leverage—this advice would have been good to give to myself a year ago.

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