2025-12-16 06:22:47

The market just took a breather after last weekend's crash, but even more intense shocks are coming. Bitcoin broke through $85,000, and Ethereum completely fell below $3,000. In just 24 hours, over 110,000 traders were liquidated, and nearly $2.9 billion vanished into thin air. But this might just be the beginning; the real trouble is set to erupt this week.

Everyone is watching the Bank of Japan. They are holding a meeting this week, and the probability of raising interest rates to 0.75% has soared to 98%. This is the most aggressive tightening in thirty years, instantly triggering a global "yen arbitrage cleanup."

Think back to the patterns of recent years—institutions borrowing near-zero-cost yen, converting to dollars, and investing worldwide, with Bitcoin being one of the main targets. Earning interest spreads while lying back comfortably. Now, Japan suddenly tightens the monetary policy, and borrowing costs surge. These capital flows are frantically selling assets to buy back yen and repay debts. Bitcoin is at the forefront, turning into their "cash machine." This isn't a matter of faith; it's pure liquidity withdrawal.

Looking back, the warning signs of the crash were there all along. The Fed's rate cut expectations completely fell apart, Powell's stance was ambiguous, and global liquidity expectations turned around first. Plus, Standard Chartered Bank suddenly cut its Bitcoin target price in half, casting doubt on the buying power of major whales.

The question now is: has the worst passed? The answer is uncertain. The liquidation of 110,000 traders and the evaporation of $2.9 billion might just be the first wave. The "big card" of Japan's rate hike is about to be played, and those rushing to buy the dip should be cautious—you might catch not a flying knife but a sickle.

Hold your ground; cash is king. Wait for the market panic to fully unleash, and for those bloodied chips to be cut out. Opportunities never lack, but only those who survive can witness the next bull market. What do you think about this market? An abyss or a golden pit? Share your judgment.

BTC-0.27%

ETH-0.15%

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DegenWhisperer

· 12-18 21:06

The yen arbitrage move was really fierce this time, 2.9 billion just gone like that. The bagholders probably can't sleep well. I'm a bit tempted to buy the dip but afraid of stepping on a landmine. This feeling really... sucks. The more Powell's attitude remains ambiguous, the less I believe him. The idea that Bitcoin has become a cash machine hits hard. Holding back is correct, but look at how many people can really control themselves. Let's see how Japan performs on Thursday first; maybe that's the real "scythe moment." Is it an abyss or a golden pit? Honestly, no one can say for sure right now. I choose to wait and see. This wave will probably wash out another batch of retail investors. Only those who survive are the winners—I think there's nothing wrong with that.

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BackrowObserver

· 12-18 03:31

Damn, the yen arbitrage wave really caught us off guard. If this pace continues, someone will definitely lose everything. --- Saying $2.9 billion is gone just like that—how many people are losing sleep over this? I definitely dare not buy the dip. --- Wait, is Standard Chartered helping someone cut the leeks? Suddenly slashing the target price—this pace is pretty ruthless. --- Scythe vs. flying knife, quite a decisive statement. Now I really don’t know who’s who. --- “Cash is king,” that’s a good saying. At least it allows us to survive and see the next round. --- The probability of the Bank of Japan raising rates by 0.75% to 98%—this feels like a ticking time bomb. Whoever goes in will be doomed. --- 11,000 people liquidated in a day—just thinking about it makes me uncomfortable. Those who didn’t lose out this round probably already ran. --- Is it an abyss or a golden pit? That’s a clever question, but I can’t find an answer even if I try. --- The term “liquidity withdrawal” is used perfectly. Basically, it means being completely cut off by institutions.

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MetaMuskRat

· 12-16 06:57

Yen arbitrage wipeout, this round is really brutal. Those who took the flying knives are all in ICU, and with the sickle coming, it will be even worse.

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RugResistant

· 12-16 06:56

Yen arbitrage blew up, it's really incredible. This wave of institutions is really疯狂抛, the metaphor of Bitcoin as an ATM is too heartbreaking, haha. Whether it's a sickle or a flying knife now, it's hard to say. Anyway, I am firmly holding onto cash.

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SigmaBrain

· 12-16 06:37

The big cleanup of Yen arbitrage, the institutions have really been scalpled. Anyone still trying to buy the dip before the sickle falls will have to eat dirt. To put it simply, it's a liquidity crunch; how much is faith worth? The current problem isn't where the bottom is, but who is still alive. Wait, isn't this the same as 2015? History repeating itself, strange. Holding back is really the only way out; itchy hands basically mean surrender.

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