Today's big dump, many people guessed the wrong direction.

Some say it's the regulatory actions of a certain major country over the weekend? The timing doesn't match; if that were the case, it should have collapsed much earlier. There's also a rumor that the Federal Reserve Chairman is going to resign? His term doesn't end until June next year, and given his working style, it's unlikely he would be forced out by political pressure.

The real thunder struck just before 8 AM today — the Bank of Japan suddenly signaled an interest rate hike. As soon as the news broke, the USD/JPY pair plunged immediately, and the crypto market nearly followed suit; the timing was too precise.

To put it simply, this is a chain reaction of tightening liquidity. Among the major economies in the world, one has started to "turn off the tap", and may even reverse the pumping. This naturally puts pressure on crypto assets that are highly dependent on a loose monetary environment.

Currently, some attention in the market may shift to observing whether there will be pressure from across the ocean on Japan to maintain some form of coordination in monetary policy, putting a brake on this tightening cycle. After all, global markets are currently tied too tightly, and nobody wants to see liquidity suddenly plunge.