"Tomorrow's Japan interest rate decision, should we run?" This has been the most asked question in the backend recently.

I guess many people scrolling past this message are just hurriedly skipping or shouting "bearish" with others in trading groups, but honestly, how serious this matter really is might not be fully understood by many.

As a market participant who has always focused only on core variables and is not interested in noisy news, I must clarify the significance of Japan's rate hike today. Don't underestimate it; its impact could be much greater than the Fed's rate cuts, especially for the digital assets we hold. This is truly a "life-and-death test."

**First, correct a common misconception**

Don't think of Japan's rate hike as "their thing." Why do I say it's even more critical than the Fed's rate cuts? Because all financial operations' "first moves" carry explosive potential. How did the Fed's initial rate cuts go? The market was hot at first, but subsequent effects became weaker and weaker—that's called "marginal diminishing returns." Japan's rate hike is the same; whether they actually implement it tomorrow or in the coming months, this is their most aggressive move in nearly 30 years.

A very important detail: Japan's interest rates have been long-term at zero or negative. Borrowing 1 million yen for a year almost costs nothing in interest. This "free money" has supported countless speculative trades worldwide. Now, this chain might be broken.

When the real liquidity tightening begins, what will happen to the crypto market's liquidity? Holders of BTC and ETH should be mentally prepared. This is not alarmism; it is the market reality.