Today the Asian market opened quite excitingly — the Bank of Japan suddenly released a signal for interest rate hikes, and the probability given by the market jumped directly to 64%. As soon as this news came out, a chain reaction exploded.

The Nikkei 225 index plunged nearly a thousand points in a single day, and the yield on 2-year government bonds surged to its highest level since 2008. The situation in the crypto market is even more severe: Bitcoin responded by falling below the $86,000 mark, with over $600 million liquidated across the network in 24 hours, and approximately 210,000 investors were forcibly liquidated in this storm.

Interestingly, monetary policies in the East and West are heading towards two extremes. Japan is preparing to tighten liquidity, while the probability of a rate cut by the Federal Reserve in December is as high as 87.4%—such a reverse operation is not common in history.

However, there is also good news. The Japanese government is promoting a tax reform plan, intending to unify the cryptocurrency transaction tax from the current maximum of 55% down to 20%, leveling it with stock trading. If this is implemented in 2026, the domestic cryptocurrency market in Japan may be activated by a significant wave.

On-chain activities are also quite frequent. A whale address has mortgaged 55,000 ETH, borrowing 50 million USDT and then transferring it to a leading exchange; the listed mining company Bitdeer continues to increase its holdings, which have now reached 2,141 BTC; USDC Treasury destroyed 60 million stablecoins this morning. These capital flows are worth continuous observation.

Musk recently put forth his AI narrative again: he believes that artificial intelligence will lead to a productivity explosion within three years, helping the U.S. resolve its $38 trillion debt crisis and even achieve high incomes for all. This statement sounds very science fiction-like, but what if it really becomes the narrative engine for the next bull market?

Analyst Tom Lee once said: "When you're afraid, pull back your perspective a bit." No matter how intense the short-term fluctuations are, the long-term trend may be quietly surging.

A few questions I'd like to hear everyone's thoughts on: Will Japan's interest rate hikes continue to suppress the crypto market? Is a 20% flat tax rate attractive? Can AI take over as the new main narrative?

BTC1.34%

ETH-0.28%

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GasGuzzler

· 11h ago

210,000 people got liquidated, that's quite a hit... When Japan takes action, the whole market has to tremble along --- Instead of worrying about interest rate hikes, why not see if Japan's 20% tax rate can really attract funds to enter the market --- Musk is starting to tell stories again, but to be honest, this time the AI narrative is indeed a bit different from before --- Whales are moving, mining companies are increasing their positions, and retail investors are getting liquidated... this gap is quite painful --- In the short term, it does feel tough, but when you extend the time frame, it doesn’t seem so desperate --- The question is, does Japan really dare to tighten? This game hasn't fully landed yet --- $600 million got liquidated, enough for some people to regret for a whole year --- Stablecoins are being destroyed, whales are borrowing USDT... these details need to be monitored --- Can AI take over? It depends on how the Fed lowers interest rates, these two lines are still a bit messy at the moment --- If leverage is too high, it ends up like this, one piece of news can cost you tuition

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WhaleSurfer

· 11h ago

Wow, 210,000 people were liquidated, this wave is really blood flowing like a river. Can Japan's tax rate really drop to 20%? Feels like another big pie in the sky, haha. Bearish in the short term, bullish in the long term, I've heard this a thousand times. Musk is talking nonsense again, AI saving US debt? If I believe it, you've won. Is the Whale buying the dip or dumping? This is the point that should be followed.

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Rugman_Walking

· 11h ago

210,000 people liquidated, how ridiculous is this, the leverage monsters really need to wake up --- If Japan really lowers the tax rate to 20%, I might consider opening an account in Tokyo --- Musk's 38 trillion debt dream, just listening to it is enough, still prefer spot --- Whales borrow USDT and then transfer it to the exchange? Are they building a position or dumping, can't really understand --- Fed cuts interest rates, Japan raises interest rates, the market is really split, this is just a casino --- Bitcoin breaking 86,000, is this a false break or does it continue to test the bottom, looking for a perspective --- If tax reform really lands, I'll go all in on Japanese exchanges, don't want to be sheared by the domestic side anymore --- No matter how frequent the on-chain data is, it can't withstand this macro strike, short-term still needs to look at the policy's face --- Tom Lee's statement is just the standard "last placebo before cutting losses", I don't believe it --- AI taking over the narrative? Wake up, how many rounds of Musk's AI dream is this, every time it's just deceiving newcomers

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AirdropChaser

· 11h ago

210,000 people got Liquidated, this wave is really harsh. However, I think Japan's 20% tax rate could attract a batch of new entrants. --- Elon Musk's theory about AI debt sounds ridiculous, but what if it really becomes the next narrative... --- A Whale dumped 50 million USDT into the exchange, is this dumping or buying the dip? It's a bit intriguing. --- The monetary policy in the East and West is Reverse, this kind of situation is indeed rare. Looking bearish in the short term, but how about long-term... it depends on how the narrative is crafted. --- 600 million in liquidation quota, this is the price of retail investors' blood. But it also shows that institutions are accumulating chips at low levels. --- Japan's interest rate hike will indeed continue to press, but if tax cuts are implemented in 2026, there might be a wave of Rebound expectations.

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LayerZeroJunkie

· 12h ago

Wow, 600 million got liquidated, how many people must be on their knees now? --- Japan's tax rate dropped to 20%? That's not until 2026, will we even be alive by then, haha. --- Elon Musk's 38 trillion debt story sounds like a science fiction novel, but anyway, the next big pump will need a reason, right? --- Whale borrowed 50 million USDT and transferred it to the exchange, is this going to dump or are they accumulating chips? --- Fed cutting rates while Japan raises them, this reverse operation is indeed rare, where is the money going? --- 210,000 people got liquidated, I bet 99% of them are leverage maniacs. --- Bitcoin breaking 8.6, honestly a bit heartbreaking, but Tom Lee is right, just look at the long term. --- USDC burning 60 million? What are stablecoins up to this time?

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