The Bank of Japan's interest rate hike decision should not be underestimated in its impact on the cryptocurrency market. Historically, Japan's rate hike cycles have often been accompanied by price corrections in major cryptocurrencies such as Bitcoin and Ethereum, especially in market environments heavily reliant on arbitrage capital for liquidity.

The key risk point is the potential rate hike in December 2025. If it materializes, it could trigger a new wave of sell-offs—some analysts believe Bitcoin could drop below the $80,000 mark, potentially reaching the $65,000 support level. For Solana and other small to mid-cap cryptocurrencies, the decline could be even more severe.

How should investors respond? First, they should resist the temptation of high leverage trading and moderately reduce the proportion of cryptocurrencies in their asset allocation. Second, they need to closely monitor the JPY exchange rate trends, Japanese government bond yields, and changes in the global liquidity environment—these indicators are often leading signals of market turning points. Instead of passively bearing risks, it’s better to proactively position for defense.