The Bank of Japan is scheduled to hold a meeting next week on the 18th. The current market consensus is that interest rates will jump from 0.5% to 0.75%, a level not seen in the past 30 years. The key point is what? Among the nine members of the decision-making committee, no one has publicly opposed the move; in fact, more than half are inclined to support it. BOJ Governor Ueda Shinji has also not hidden his stance.

For us crypto players, this event might be even more intense than the Fed's actions. What's going on?

It's a simple principle—over the past three decades, the Japanese yen interest rates have basically been at the floor, and global capital markets have used it as a "cheap financing resource." Many borrow yen to speculate on US stocks, Hong Kong stocks, and also buy Bitcoin—this is the legendary yen carry trade. Once Japan begins to tighten, the cost of borrowing skyrockets, and trend-following investors' first instinct is to cut positions, repay yen, and hedge risks.

Remember the wave in July? The yen appreciated sharply, and Bitcoin and gold were both hammered down, with the entire market filled with a risk-averse atmosphere. Now, the BOJ is officially tightening liquidity, and the impact will be even more intense.

What should retail investors do?

Don't panic, but stay alert. Here are a few key points to watch:

**First**, keep a close eye on the yen exchange rate. If interest rate hikes cause the yen to appreciate rapidly, it could trigger a sell-off in global stock markets and the crypto space. Stay clear-headed in such times.

**Second**, beware of chain reactions in the market. The global financial markets are now like a tightly wound rope—if the Japanese stock market can't withstand the pressure and crashes, risk sentiment will quickly spread to the crypto world. Don't assume Bitcoin can always serve as a safe haven; reality can be harsh.

**Third**, control your hands. Such macro shocks of this magnitude will wipe out a large number of highly leveraged accounts. Our first task as retail investors is to protect our principal and avoid rushing to buy the bottom. Once the market has digested this wave of shocks and uncertainty truly settles, then real opportunities will emerge.

Currently, the market is holding its breath, waiting for the 18th to see the outcome. What do you think? Will this Japanese rate hike be the final straw that breaks risk assets? Or will it be the last of the bad news before a new rally begins? Share your judgment in the comments and let's watch how this storm unfolds.