The big dump during today's Asian market session stems from the market's panic towards the Japanese Central Bank. Kazuo Ueda will give a speech tonight, and if he releases hawkish signals again, a rate hike will be a done deal.
Currently, the probability of interest rate hikes on the prediction platform has surpassed that of no hikes. The performance of Bitcoin, Nikkei 225, and the Korean Composite Index today is quite poor, typical panic selling during the Asian market.
Japan has maintained low interest rates for a long time, which provides a cheap funding pool for the entire Asian market. A large amount of funds are borrowed from Japan for arbitrage trading; once interest rates rise and borrowing costs increase, these leveraged funds must withdraw. For the crypto market, the impact of this tightening liquidity should not be underestimated.
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The big dump during today's Asian market session stems from the market's panic towards the Japanese Central Bank. Kazuo Ueda will give a speech tonight, and if he releases hawkish signals again, a rate hike will be a done deal.
Currently, the probability of interest rate hikes on the prediction platform has surpassed that of no hikes. The performance of Bitcoin, Nikkei 225, and the Korean Composite Index today is quite poor, typical panic selling during the Asian market.
Japan has maintained low interest rates for a long time, which provides a cheap funding pool for the entire Asian market. A large amount of funds are borrowed from Japan for arbitrage trading; once interest rates rise and borrowing costs increase, these leveraged funds must withdraw. For the crypto market, the impact of this tightening liquidity should not be underestimated.