This move by the Bank of Japan might be hiding a buying opportunity.

In December, the Bank of Japan confirmed an interest rate hike, raising the benchmark rate from 0.5% to 0.75%. This is their second monetary tightening this year. On the surface, it appears bearish, but in reality, it may have left a window open for calm investors.

In recent years, the yen’s near-zero interest rate made it the main currency for global arbitrage trades—borrowing yen to buy US dollar assets or speculate in cryptocurrencies was extremely cheap. Now that borrowing costs have suddenly risen, high-leverage funds are likely to withdraw first, and in the short term, the crypto market—especially low-liquidity altcoins—will be under pressure.

However, historical data shows a pattern: every time there is a panic sell-off like this, it actually pushes mainstream assets like Bitcoin and Ethereum into value zones. Large funds are just adjusting their portfolio allocations; the genuine demand for hedging and anti-inflation logic won’t change, and once liquidity stabilizes, they’ll have to come back in to buy.

At this stage, you can consider two approaches:
First, control your positions and hold cash, waiting for a 5%-10% pullback in major coins before gradually building positions;
Second, pay attention to projects that are fundamentally solid but have been unfairly hit by market sentiment, and take small exploratory positions.

Market volatility is normal, and panic often creates opportunity. Stay calm—don’t chase at emotional highs, and don’t panic sell at the lowest points.