Good evening, I would like to remind everyone of a risk point: On March 19, Japan held a central bank meeting, which is likely to end Japan’s negative interest rate policy over the past 20 years. $BTC $ETH $SOL
In other words, Japan is going to raise interest rates! If Japan decides to raise interest rates, Bitcoin may drop to around 50,000!
Why is Japan’s interest rate hike so critical? I used to be a macro researcher at a fund company. Let me explain to you:
Due to negative interest rates in Japan in the past, large capital can borrow large amounts of money from Japan at an interest rate of about 1%. If you think about it, if you borrow online loans on your own, the interest rate of Huabei credit card can be 15% to 20%, while the interest rate of capital borrowing from Japan is only about 1%.
What has this caused? A large amount of funds in the asset market have been borrowed from Japan and invested in U.S. stocks and Bitcoin. This is also the most critical reason for the decline in the past two days, because Japan is about to close on March 19, which is tomorrow. The interest rate discussion meeting has begun!! According to current market expectations, Japan has a high probability of ending negative interest rates this time!!
Then, a large amount of funds may be forced to withdraw from Bitcoin and US stocks, and Bitcoin will suffer heavy losses. Don’t underestimate the fact that the interest rate hike may only increase by 0.25%~0.5%. Big capital is worth hundreds of millions or billions. Borrowing, even if the interest rate is only 0.25%, there is still a gap of several million, so capital may be withdrawn significantly.
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