The Bank of Japan's interest rate decision next Tuesday, December 19, has triggered market turbulence. Current expectations indicate that the BOJ will raise the benchmark interest rate from 0.5% to 0.75%, reaching the highest level in 30 years. Following the announcement, Bitcoin responded with a decline—its current price dropped to $89,000, a 24-hour decrease of 1.9%. Market liquidations also intensified, with 115,000 positions being liquidated, amounting to $272 million.

What is the logic behind this? An interest rate hike in the yen means higher costs for carry trades. For a long time, many traders borrowed low-interest yen to buy high-yield assets like Bitcoin. Once the yen interest rate rises, these positions face forced liquidation pressure. Such passive selling can amplify market volatility in the short term.

However, from another perspective, Bitcoin's total supply is only 21 million coins, and institutional investors' holdings continue to increase. The long-term fundamentals still support the market. In the short term, prices may test lower levels, but this could also present an opportunity for long-term investors. How low do you think it can go—$80,000 or $70,000?