Bitcoin falls below 85,000, Ethereum drops below 3,000, over 110,000 traders get liquidated within 24 hours, and nearly $2.9 billion in funds dissipate in a liquidity storm. This decline is not without clues—the true culprit points to the imminent aggressive measures by the Bank of Japan.

This week, the Bank of Japan's meeting is imminent, and the probability of raising interest rates to 0.75% has soared to 98%. This signals the most severe monetary tightening in thirty years. For a long time, global institutional investors have leveraged near-zero interest rates in the yen to exchange for dollars and heavily allocate into high-risk assets like Bitcoin, profiting from interest rate arbitrage. Once Japan tightens its monetary policy, borrowing costs sharply increase, forcing these arbitrage capital outflows—massive assets are sold off crazily to repay yen-denominated debts. Bitcoin is at the forefront, becoming the "cash machine" for institutions.

Warning signs appeared long before the crash. The Fed's rate cut expectations cooled, policy stance wavered, and the global liquidity feast gradually receded. Meanwhile, some large investment institutions began lowering their target prices for Bitcoin, and whale buying power also showed signs of fatigue. Multiple negative factors stacked up, revealing the market's fragility.

The choices before us are simple: those eager to catch the bottom are taking the "flying knives," and what follows is often the sickle that cuts at the waist.

In such an environment, what is the wisest strategy? Hold back, stick to spot holdings. Wait for market panic to fully release, wait for those blood-stained chips to truly land. The crypto market is never short of opportunities, but those who survive until the end and walk away smiling are often those who know how to wait. Keep calm, and you can gain the initiative in the next wave of market movements.