Recently, there has been big news in the Japanese bond market — the auction for 10-year government bonds was exceptionally hot, and the market is betting that the probability of interest rate hikes has risen to 80%. You might think this has nothing to do with our coin activities? Wrong, it has a lot to do with it.

Japan is at least the third largest economy in the world. Once their central bank takes action, the flow of global funds will have to be reshuffled. If the expectation of interest rate hikes is confirmed, the hot money that was originally wandering in the crypto market may very likely turn around and run to the traditional financial market - after all, when bond yields rise, the risks are lower. This will definitely put significant short-term pressure on the coin market.

How should retail investors respond?

First, don't panic. Keep an eye on global capital flows; pay attention to data like the yen exchange rate and U.S. Treasury yields. Secondly, don't put all your eggs in one basket; control the proportion of crypto assets in your personal assets, and allocate some stablecoins and traditional assets. The most important thing is: don't run just because you see others running, and don't go all in just because others are doing it.

My opinion? No matter how much the external environment changes, the crypto market has its own gameplay and cycles. Solid projects with practical applications will still stand firm in the long run. Conducting thorough fundamental research and managing position sizes and risk exposure is much more useful than anxiously staring at the market every day.

In simple terms, staying alive is more important than making quick money. Calm observation and rational decision-making are the keys to not being washed out in such a complex market.