#加密生态动态追踪 The Bank of Japan suddenly raises interest rates, and the crypto market faces a liquidity crisis

This week's BOJ meeting sent a dangerous signal: the probability of raising interest rates to 0.75% has surged to 98%. This is not just a policy adjustment; for institutional investors leveraging yen arbitrage to布局cryptocurrency assets, it’s a nightmare of liquidity.

Data speaks: Bitcoin drops below $85,000, Ethereum falls below the psychological level of $3,000, over 110,000 traders liquidated in a single day, and $2.9 billion in wealth vanished within 24 hours. The sharp decline seems sudden, but the logic is clear — in the past, institutions used low-interest yen to arbitrage, earning from exchange rate and price differentials. Now, with Japan tightening liquidity and borrowing costs soaring from nearly zero, forced sales of crypto assets to exchange for yen to repay debts are happening. This is a classic case of being choked rather than a loss of market confidence.

Early warning signs were present. The Fed’s rate cut expectations have diminished, policymakers’ attitudes are ambiguous, some major investment banks have lowered Bitcoin price targets, and whale buying activity has significantly weakened — all indicating what might come. Multiple negative factors resonate, and the crisis is now fully exposed.

How to survive the current situation? Control greed, hold onto spot assets, and don’t rush to buy the dip. Wait until panic is fully released and bloodied chips truly bottom out; only then will a market turnaround surface. Surviving is the key to making money. In such volatility, maintaining patience and discipline is often the secret to victory.