The Bank of Japan officially raised interest rates yesterday for the first time in 30 years, increasing by 25 basis points directly to 0.75%. Originally, everyone was speculating that this would lead to a dumping, and the crypto world might be doomed, but what did Bitcoin do? It stubbornly surged up by 4000 points from the low of $84,418, finally reaching $88,376. This V-shaped reversal left many who had cut losses in advance completely bewildered.

Looking back at this market trend, the tactics aren't that complicated. When the interest rate hike news came out, the market indeed experienced a flash crash, and there were definitely stop-loss orders, but the reversal came very quickly. Why?

The core is right here—many people only see the two words "interest rate hike" and start thinking the worst, but in fact, Japan's real interest rate is still negative. What does this mean? The nominal interest rate has risen to 0.75%, but the inflation rate is even higher, so the real purchasing power is still depreciating. This means that there is no reason for yen funds to flee the crypto market on a large scale; the previously rumored "arbitrage capital exodus" was basically a false alarm.

What is the true face of a market reversal? After the panic selling is over, institutions begin to quietly buy the dip. The market is squeezing out the bubbles while also looking for real buying points. This is known as "bad news fully digested means good news" — it doesn’t mean that bad news suddenly turns good, but rather that everyone has already absorbed the impact of the bad news, which instead becomes an opportunity to get in.

To be honest, those who have been watching the macro and the market for 8 years see it clearly: don't trap yourself in the mindset of "interest rate hikes must lead to a crash." The market is always more complex than you think. The next time you encounter a similar event shock, don't rush to panic sell; think about the real logic behind it. Japan's current situation is a living textbook case—what appears to be bad news often hides the next opportunity.