The Bank of Japan is about to announce an interest rate hike decision, and global markets are holding their breath. It is almost certain that interest rates will rise to the highest level in thirty years. Don't underestimate this 0.25% change—it marks a turning point in the shift away from cheap global funding, directly impacting the liquidity foundation of the crypto market.

By closely observing the recent market trends over the past month, the crypto space has been continuously declining, and market sentiment has already fallen into the "extreme fear" zone. In addition to expectations of Federal Reserve policy, expectations of a rate hike in Japan are also brewing beneath the surface. Now, the "shoe" is about to drop, and everything depends on the specific statements from the central bank governor.

If the stance is to adopt a moderate rate hike, signaling a gradual approach, it could potentially lead to a reversal of "bad news being fully priced in"—allowing the market's long-standing nerves to relax. However, if hints suggest that aggressive rate hikes will continue next year, then investors need to brace themselves. Global liquidity faces tightening, with emerging markets bearing the brunt of the pressure. As the most risk-sensitive asset class, cryptocurrencies are unlikely to see significant improvements in the short term.

Some operational suggestions: First, absolutely do not blindly buy the dip. Protect your core holdings and keep sufficient ammunition. Currently, it’s safer to follow the trend with long positions; contrarian trading carries too much risk. After all, with limited funds and a small margin for error, protecting your principal is the top priority.

After this meeting, the flow of global capital may quietly change. Besides Bitcoin, which other crypto assets can break through against the trend in a tightening liquidity environment? This warrants in-depth research.