On the news front, the Bank of Japan held a monetary policy meeting last week and decided to adjust the current policy rate of 0% to 0.1% to 0.25%. This rate hike is the first rate hike since the negative interest rate policy was lifted in March this year. The economic indicators released by the United States last week declined, and people began to realize that the US economy may fall into recession; the high expectations for high-tech stocks such as semiconductors that led the rise in global stock markets are also fading. The main reason for this super-scale correction of Japanese stocks is the change in the monetary policy of the Bank of Japan a few days ago. This time, the Bank of Japan raised interest rates by 15 basis points, and the scale of this rate hike exceeded the market's previous expectations of 10 basis points. In addition, the Bank of Japan also announced a plan to reduce its balance sheet, reducing the purchase of Japanese bonds by about 400 billion yen each quarter, and the monthly bond purchase scale will be reduced to 3 trillion yen by the first quarter of 2026. Raising interest rates and shrinking the balance sheet are naturally bad news for the stock market. Japan's debt ratio exceeds 200%. Once it chooses to raise interest rates, problems with Japanese bonds are likely to follow. As the latest US economic data is lower than expected, investors are worried that the US economy will fall into recession, and panic sentiment is spreading in the market, causing the New York stock market to fall and the US dollar to weaken rapidly. Against this backdrop, panic selling occurred in the Tokyo stock market. Ethereum in the crypto market once fell by 26%, and the number of liquidated positions exceeded 320,000.
Ethereum spot ETF was approved and officially started trading, but what many people didn’t expect was that it fell so much this time, from 2600 to the lowest price of 2088, it was a rapid decline. Many people’s orders for loans, leverage, and contracts were directly liquidated without the opportunity to cover their positions. In fact, at this time, many people realized the importance of position management that you told them many times at the beginning. This circle is not about who runs faster, but who can walk more steadily and survive longer!
Judging from the entire liquidation map, the liquidation of the contract is considered to be the last wave of decline before the interest rate cut, and the entire option position and the entire network's contract position have also dropped to a level basically the same as the 2022 bear market. From a long-term perspective, this is not a bad thing. On the contrary, it is in line with the logic of starting a large market cycle. It also indicates that the subsequent crazy bull market may make BTC rush higher!
There is always a "big kill" before each round of interest rate cuts. This round did not escape the panic index being so high. It was in March 2020. That time was: 3.12. At that time, the epidemic black swan, the global stock market plummeted, and Bitcoin presented a once-in-a-lifetime long-term buying opportunity! And today is the same. I personally think that this opportunity is actually very rare. After waiting for the market to stabilize, this entry opportunity is really a good opportunity.
There has not been a large-scale outflow from Bitcoin and Ethereum spot ETFs.
Obviously, the United States does not have that much money to buy now, unlike when the Bitcoin spot ETF was just passed. There is no need to think too much, just buy, keep buying! Now it may be due to multiple factors that have led to the weakness of the entire market, but overall, there has not been a large-scale outflow and market crash, indicating that the big market is still to come!
First of all, after the sharp drop last month, BTC broke through the key position. We knew that there would be another drop later. The best choice at that time was to wait patiently. Watch more - learn more - summarize more! #BTC
