#BTC资金流动性 Has once again been liquidated. The crypto world has truly hit a new low these past two days.

After waking up from a nap, $BTC briefly dipped below $85,000. In the past 24 hours, the market forcibly liquidated over 160,000 accounts, involving $553 million in liquidations. Those involved probably didn’t sleep well last night.

The behind-the-scenes "trigger" points to an unexpected player—the Bank of Japan. They officially announced today a decision to raise the benchmark interest rate from 0.5% to 0.75%. It may seem like just a 0.25% increase, but this is the highest level in decades.

Why does a rate hike in Japan cause the crypto market to explode?

Simply put, an important pattern in the global financial markets has changed. Over the past few decades, Japanese interest rates have been ridiculously low, and global capital players have been doing the same thing: borrowing cheaply in yen, converting to USD or other strong currencies, then investing in global assets—US stocks, Bitcoin, Ethereum—wherever yields are higher. This operation is called "yen carry trade," and it’s a key source of liquidity in the crypto market.

Now that the Bank of Japan suddenly acts, the cost of borrowing in yen skyrockets. Traders who used high leverage to build positions face a stark choice: either increase margin or immediately close their positions and pay off debts. The most direct way is to sell off $BTC and other crypto assets to convert back to yen and stop the bleeding. This concentrated sell-off has become the core driver behind the market plunge.

Here’s the interesting part: after the rate hike announcement, the market reaction was unexpected. Normally, such bearish news should trigger a Bitcoin crash. But instead, the price remained around $87,000, and the entire market looked strangely "calm." Some market analysts suggest this might be because the bad news was already priced in, and the market had anticipated it. But whether this truly means the risk has been alleviated or if it’s just eerie calm before the storm, no one can say for sure.

This market movement once again confirms a basic fact: cryptocurrencies are not an independent universe. Any monetary policy adjustment by a central bank worldwide is responded to more sensitively in the crypto space than in other markets. Those built on low-cost financing and leverage tend to collapse the fastest.

It’s time to be cautious.