The move by the Bank of Japan could change the entire market rhythm.

On December 19th, a 75 basis point rate hike has become a high-probability event. The most aggressive shift in thirty years is impacting global financial markets—and the crypto space is at the forefront.

Where is the problem? The era of cheap yen is coming to an end. Over the years, yen arbitrage trading has been a major source of global liquidity, with large amounts of capital borrowing low-interest yen to bet on high-yield assets. Now, this money is flowing back. As arbitrage funds start to withdraw, the market will inevitably have to absorb this gap.

**What the market is watching**

Traders are now focused on the $63,000 level for Bitcoin. This is not an arbitrary choice—historically, such key levels often serve as triggers for chain reactions of liquidations. If broken, it could trigger a domino effect: retail stop-loss orders, leveraged liquidations, institutional risk controls—one after another.

**Three things to watch next**

Are there signs that funds are fleeing early? Can Bitcoin hold steady at $63,000? Will smaller coins face even more intense sell-offs—these are critical variables that will determine the trend.

When central banks tighten their actions, market volatility often increases. This time, we need to be especially cautious, as the scale and duration are different.

What is your current position? Are you waiting to buy the dip or cutting losses to protect capital? See you in the comments—we’ll keep a close eye on this market movement.