The Bank of Japan is getting serious—once the rate hike news is out, the world's largest pool of cheap capital might run dry. How big is the impact? To put it simply, institutions that used to make easy money from "yen carry trades" are in for a tough time.

The strategy was straightforward: institutions borrowed yen at near-zero cost, exchanged it for dollars, and bought assets like Bitcoin and US stocks—just pocketing the interest rate differential was hugely profitable. But now the situation has changed—if Japan raises rates, borrowing costs will soar and the yen might appreciate. When the previously borrowed funds are returned, it could even result in a loss. What's worse, to cover the gap, many institutions may be forced to sell off their crypto assets.

Last year, a minor move by the Bank of Japan caused Bitcoin to crash instantly. If they really hike rates this time? Liquidity will be drained, high leverage positions will get liquidated, panic selling will ensue... The chain reaction could be even more intense than you imagine.

On the flip side, however, such liquidity-driven crashes often create the best "golden pit" buying opportunities. Once the panic subsides, hard assets like BTC and ETH are likely to be quietly accumulated by truly savvy investors. When the market is panicking, it’s actually a window of opportunity—provided you understand the real nature of this downturn and don’t get swept away by emotion.