The sudden dumping in the morning caused a stir in the group. Various rumors were flying around, but after going through the timeline and news sources, I found that everyone might be blaming the wrong target.

First, let's talk about a few of the most widely circulated versions:

The first statement is that a certain country suddenly released negative news - but this news came out over the weekend, and the market had already digested it; the timing simply doesn't match.

The second one is even more exaggerated, saying that a certain central bank big shot is going to resign — his term clearly still has more than a year left, how could he suddenly throw in the towel at such a critical moment?

What is the real trigger?

The answer may be surprising: the Bank of Japan.

This morning at around 7 o'clock, the Bank of Japan officially announced an interest rate hike. After the news came out, the USD/JPY exchange rate experienced significant fluctuations, and the sudden collapse in the cryptocurrency market happened to occur at that moment.

Why does it have such a big impact? Because the Bank of Japan has been a super pump of global liquidity for the past few years, crazily injecting money into the market. Now not only has it stopped, but it has also started to pull back. For high-risk assets like Bitcoin, tightening liquidity is the most direct blow.

The next highlights are actually not in the cryptocurrency space itself.

How will the US react? Will the Treasury Department and the Federal Reserve intervene and pressure Japan to slow down the tightening pace? If this "tap" really needs to be tightened, the global market, especially the cryptocurrency sector, may have to brace for tough times ahead.

In simple terms, today's crash is just the cryptocurrency lying in the crossfire. The real eye of the storm is in Tokyo, and what the market is now watching is how the game will unfold between Washington and Tokyo.