Today's market fall hides a big variable behind it - the Bank of Japan may take action to raise interest rates.

It is important to understand that Japan's previous financing cost was essentially zero, which was like opening a free faucet for global speculative funds. Now that the policy direction has changed and borrowing will incur interest, those arbitrage funds will definitely need to repay their money before the official interest rate hike. The problem arises: the liquidity in the market is being massively withdrawn, which is not a trivial matter.

Projects like Pippin and TRADOOR, which are still at high positions, are probably giving the operators a headache right now. With liquidity already tight, and on top of that, Bitcoin and Ethereum leading the plunge, retail investors will definitely prioritize rushing to buy mainstream coins at the bottom. Want to sell smoothly in this environment? The difficulty has doubled.

At times like this, the choice of funds is very realistic: either cling to the big tree ( mainstream coins ), or be trapped in altcoins that no one wants to buy. When a liquidity crisis strikes, all narratives and hot topics must give way to the simplest question of "can it be sold?"