Did BTC and ETH fall again today?

Spend three minutes reading this explanation, and you'll understand what really happened behind the scenes.

Let's start with the simplest analogy - imagine the global financial market as a big casino.

For the past thirty years, there has been a special "gambling table" that has been operating:
In Japan, interest rates are almost zero, equivalent to opening a "zero-interest pawnshop." The smart people on Wall Street rush to borrow a large amount of yen (after all, the interest is so low it can be ignored), then they exchange it for dollars, and go buy U.S. stocks, buy Bitcoin, and buy various high-yield assets.

What to earn? Earn interest spread.

How large is this game? 14 trillion dollars.

But this play has a fatal premise - Japan can never raise interest rates. Once Japan says "I want to raise interest rates," the game will collapse.

Now the question arises:
Inflation pressure in Japan is too high, and the central bank has recently frequently released signals: "We may have to raise interest rates."

What will those institutions that borrowed huge amounts of yen do?

They will frantically sell off their assets—US stocks, Bitcoin, various cryptocurrencies, all converted into US dollars, and then exchange the dollars back into Japanese yen to pay off debts quickly. Why? Because the longer they delay, the higher the interest costs.

Why is Bitcoin the first to bear the brunt?

First, liquidity tightening. The market suddenly lost a large amount of "hot money", and all risky assets will be sold off, with Bitcoin being the hardest hit due to its high volatility.

Second, panic contagion. When large funds withdraw, retail investors sense something is wrong and follow suit, triggering a stampede effect immediately.

Third, leverage liquidation. Many people have used leverage to go long, and when the price falls, a margin call comes, causing an even sharper decline.

What you see now may just be an appetizer.

BTC has fallen below 86000, but the real eye of the storm is on December 18-19 - the Bank of Japan meeting to decide whether or not to raise interest rates.

If it really increases, it will be even more exciting later.

Here are two suggestions:

Don't rush to catch the bottom. Entering the market now may not be picking up bargains, but catching flying knives.

Control your position. Make sure you can survive this turbulence, and don't use up all your bullets.

In summary, the whole matter:
Japan raises interest rates → the cheapest money in the world becomes expensive → institutions are forced to sell assets to repay loans → the market lacks money + panic → Bitcoin falls.

The logic is that simple and straightforward.