Japan's interest rate hike expectations have caused a collapse in the crypto world, blindly following the trend to sell coins at this moment will result in Rekt!

The Governor of the Bank of Japan, Kazuo Ueda, along with several members, has been intensively releasing hawkish signals. The market expects that an interest rate hike in December or January next year is almost a certainty, which has strengthened the yen and pushed Japan's short-term government bond yields to a 16-year high.
1. This statement has triggered a global stock market and crypto market crash today. The core reason is not the "interest rate hike" itself, but the exit from negative interest rates for the first time in 30 years, which has forced the global yen arbitrage chain to shrink. For more than a decade, global funds have borrowed yen at extremely low costs and invested in high-yield assets such as US stocks, tech stocks, gold, BTC, ETH, and SOL. This has been a significant "invisible faucet" for global risk assets.
2. After Japan raised interest rates, borrowing in yen is no longer cheap, and expectations for yen appreciation have increased. Global yen arbitrage positions are facing huge loss risks, forcing institutions to liquidate positions. In order to repay yen, they sold off high-volatility, highly liquid assets, thus BTC, ETH, and US tech stocks became the first targets to be dumped, and the crypto market, due to its 24-hour trading and high leverage characteristics, experienced even sharper declines.
3. This drop is essentially a technical shock of a one-time "global deleveraging", rather than a systemic financial crisis, and it does not change the mid-term liquidity direction of the Fed ending its balance sheet reduction in December and entering a rate-cutting cycle in 2026. In the short term, there may still be a 3-5% inertia decline, but it belongs to emotional correction. The recent short-term bottoming structure of BTC has not changed.
In summary: Japan has only symbolically exited negative interest rates, and the room for interest rate hikes is limited. In contrast, in the United States, the crypto world is still dominated by the US, the Federal Reserve is still on a path of rate cuts, and the medium to long-term liquidity trend remains upward.
Almost all altcoins in the crypto world have dropped to historical lows, generally at the absolute bottom range. At this moment, selling off due to panic is the most regrettable decision in this round of the big cycle. At this low point, you should at least wait for a rebound before leaving.
#ETH走势分析 Japan's interest rate hike #crypto market decline
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