$BTC $ETH Things are stirring again recently. On December 16th, Bitcoin experienced a short-term plunge, dropping below $86,000 at one point, with a loss of over 3% within 24 hours. The total liquidations across the network directly surged to $594 million. There are actually two main reasons behind this downward move.

First, the Bank of Japan is definitely going to raise interest rates on December 19th, by 25 basis points this time. Historical experience tells us that whenever the BOJ takes action, risk assets like Bitcoin and Ethereum tend to fluctuate violently. Second, there is uncertainty surrounding the presidential appointment at the Federal Reserve, causing policy uncertainty to spike sharply. The market has entered a wait-and-see mode, with no one willing to make early bets.

In the short term, if the BOJ continues to raise rates as usual, risk asset sentiment will be suppressed for a while. But in the long term, the direction depends on the global liquidity situation. As for the change in the Fed chair, it will indeed influence the pace of next year's monetary policy. However, the market still expects about three rate cuts next year, which is somewhat at odds with the cautious stance of the Fed. There might be another wave of emotional volatility.

For ordinary investors, now is not the time to act impulsively by shorting blindly or panic buying. My advice is: 1. Control your positions and keep enough cash reserves to handle fluctuations; 2. Keep an eye on the moves of the Fed and the Bank of Japan, and act only when market sentiment clarifies; 3. For assets you are optimistic about, consider building positions gradually and accumulating through volatility. When macro uncertainty exists, disciplined management is more valuable than guessing the right direction.

Markets always breed opportunities amid turbulence; the key is not to be scared out of the game.