The Bank of Japan is serious this time! At the December policy meeting, they decided to raise interest rates, jumping from 0.5% directly to 0.75%, and the government didn’t intervene—they just let it happen. Many people see the words "rate hike" and think something big is about to go down, but if you think about it calmly, this move might actually be an opportunity window for crypto players.

Previously, the cost of borrowing yen was close to zero, so global arbitrage funds used yen as leverage to trade crypto. Now, with borrowing costs suddenly rising, those highly leveraged hot money players will definitely consider pulling out. In the short term, we'll likely see a wave of concentrated selling in the market, especially for illiquid altcoins, which could take a big hit.

But looking at it from another angle, panic selling often unjustly drags down some decent assets. Historically, every time there’s this kind of systemic adjustment, mainstream coins like Bitcoin and Ethereum also drop, but those drops often present real low-entry opportunities. Big money might rebalance for risk in the short term, but in the long run, they still have to flow back into core assets to hedge against inflation risks.

If you’re holding positions, you might want to consider the following:

First, clear out those fundamentally weak, hype-only projects now and keep some cash on hand. When Bitcoin or Ethereum pull back about 5%-10%, it’s safer to start building positions in batches.

Second, keep an eye on projects that are being dragged down by market sentiment but are actually solid. Try small positions to scoop up some undervalued tokens.

When the market is volatile, staying level-headed is more important than anything. When others are panicking, that’s often when opportunities arise.