Currently, the entire market is closely watching the Fed rate cut, but in fact, this round of positive news has already been priced in. $BTC rebounding from 80,000 to 94,000 was driven by expectations of a Fed rate cut. Next, next week’s yen rate hike is the real key!

Looking back at 1998, after Japan ended its ultra-low interest rates, the Asian financial system nearly collapsed, and many countries couldn’t withstand the pressure. A yen rate hike is bearish for global capital markets, because at the time everyone borrowed yen to buy US Treasuries. When the yen strengthens, US Treasuries are sold off and converted back to yen, causing US Treasury yields to soar, and all high-risk assets get hammered. This logic still applies today. $SOL $BNB $ETH

Moreover, recent contract position data looks strange, as if waiting for the rate cut to trigger liquidation. The real test will be next week’s yen rate hike and CPI data. If CPI comes in much higher than expected, the market will be under attack from both sides. Pay attention to Powell’s speech regarding the Fed rate cut—dovish comments may trigger a rebound, but a hawkish rate cut combined with a yen rate hike will make the market even tougher. Everyone, be careful!