Recently, there has been a flood of comments claiming that "JPY rate hikes will cause Bitcoin to plummet." From feedback in the backend to social circles, almost everyone is asking the same question: should I liquidate my holdings?

The last part of 2025 has indeed been quite lively—The Federal Reserve just cut interest rates by 25 basis points, and the Bank of Japan has signaled a rate hike. Major financial media outlets immediately entered "alarm mode," with headlines becoming increasingly exaggerated, as if the global financial markets are about to reenact a crisis.

As someone who has been in this circle for nearly ten years and has witnessed multiple cycles of bull and bear markets, I want to state a clear opinion: demonizing the risk of rate hikes and creating panic-driven anxiety is more worth caution than the actual market risks themselves.

**Expectations have already been digested; this is the key**

The market is now discussing the possibility of the Bank of Japan raising interest rates from 0.5% to 0.75%, but this information did not suddenly emerge. As early as November, Japanese government bond yields had already hit a thirty-year high, and large institutions had begun gradually adjusting their positions rather than sitting idly by. The risk of carry trades (borrowing low-interest yen to buy high-yield assets) indeed exists, but market participants are well aware of this—such expectations are already reflected in the prices.

Instead of panicking at every piece of negative news, it’s better to calmly observe the logic behind the data. Although the rate hike cycle may bring some adjustment pressure, for long-term investors optimistic about crypto assets, this often presents an opportunity to position.