The Bank of Japan recently sent out another hawkish signal, explicitly stating that as long as the economy does not experience serious issues, it will continue to raise interest rates. It sounds very official, but insiders understand—this is a genuine hawkish stance, indicating that the trend of tightening global liquidity is far from over.

How significant is the impact on high-volatility assets like BTC and ETH? In the short term, there may be a rebound opportunity as the negative sentiment exhausts itself. But if we extend the timeline, the situation looks less optimistic. The interest rate hike cycle continues, and the cost of capital keeps rising. In such an environment, a bull market is hard to push through force. Once liquidity tightens, the market will inevitably pay a price.

So what should retail investors do? Here are some practical suggestions:

First, don’t rush to chase after rebounds. Until there are clear signs of a trend reversal, it’s better to exercise restraint, control your positions, and avoid overextending—this is the real insurance.

Second, set proper stop-losses on your holdings. Especially for those trading contracts, as market volatility intensifies and overnight spikes increase, stop-losses are not optional but a standard requirement.

Furthermore, if you’re dollar-cost averaging, slow down the pace. Wait until the market fully digests this round of negative news before considering gradual entry.

Ultimately, the market will never disappear, but you need to save your bullets. Don’t let short-term fluctuations disrupt your rhythm; those who can’t keep a steady mindset often miss their true opportunities.