#数字资产市场洞察 The Bank of Japan's rate hike expectations are heating up. How should the crypto market respond?

Recently, statements from Bank of Japan Governor Kazuo Ueda have attracted considerable attention—he indicated that they need to assess the impact of raising interest rates to 0.75% before making a final decision. Once this signal was out, many in the crypto community started to worry that a rate hike could impact the market.

But we need to analyze this issue calmly. If the rate hike policy is actually implemented, it could indeed push up risk-free yields, leading some funds to shift from high-risk assets (including the crypto market) to traditional finance. This is a basic asset allocation logic. However, this does not mean that the crypto market will "collapse." The movement of crypto assets is influenced by multiple factors such as technological progress, market sentiment, and policy trends, and will not simply decline in sync with central bank rate hikes. Historically, the crypto market has experienced numerous policy shocks and still demonstrated resilience.

How should investors respond? Here are three suggestions:

**1. Keep track of information**—Continuously monitor the policy developments of the Bank of Japan and global capital flows. Don’t let yourself fall behind in information.

**2. Manage positions**—Adjust flexibly rather than react passively. Avoid clearing all positions or heavily loading based on a single piece of news; diversification is the foundation of risk management.

**3. Maintain a stable mindset**—Volatility is inherent to the crypto market. Regular market adjustments do not need to cause panic. Blindly following the trend will only be driven by emotions.

The rate hike expectations are here. We need to stay alert, but more importantly, stay rational. Finding the rhythm amid change is the right attitude for long-term participation in the crypto market.