#市场触底了吗？ The Bank of Japan's "historic interest rate hike" enters the countdown, becoming the only magic wand for the market.

The monetary policy meeting of the Bank of Japan officially took place on December 18-19, where the decision was unanimously voted to raise the interest rate by 25 basis points to 0.75%, the highest level since 1995. A previous survey of the Bank of Japan’s quarterly outlook showed that confidence among large manufacturers rose to its highest level in four years, with strong momentum in wage growth, further supporting the decision to raise interest rates. Following the announcement of the decision, pressures from the outflow of Japanese interest capital continued, and the sentiment towards global risk assets turned cautious, with the market continuing to doubt the sustainability of the previously independent short-term cryptocurrency market, shifting focus to the central bank's next interest rate hike path, which is the main driver of the decline in the cryptocurrency market since December.
The market has clearly entered a "downtrend driven by events" after fluctuating at high levels, and the sudden rise and fall overnight is a signal to confirm the trend, not just a correction. It is a confrontation between short-term technical saturation and expectations of tightening overall liquidity. The former may lead to a rebound, while the latter dominates the market trend. The current critical event is the decision and guidance of the Bank of Japan regarding the interest rate ( expected to be announced this afternoon Beijing time, which is the final judgment on market movement today and even this week.
Secondly, there is a convergence of monetary policy signals from the Federal Reserve, as the statements of several officials have increased the divergence, which will directly affect the liquidity environment of risk assets; finally, year-end liquidity pressures still persist, with profit-taking at important price levels and outflows from digital asset funds, which may increase market volatility in the short term.
In general, the market is in a key pressure testing period dominated by expectations of external tightening, and establishing long-term capital builds a potential "protective barrier" for the market. However, the short-term trend has been initially determined by the Bank of Japan's decision. Short-term trading should be extremely cautious, with an even further reduction in trading frequency, focusing on trend opportunities after breaking key price levels, and waiting for clear signals from Federal Reserve policy and a calm liquidity sentiment at the end of the year before implementing precise strategies!