Interestingly, this time Japan's decision to raise interest rates has become a catalyst for the crypto market.

Just a few days ago, investors were worried that "the withdrawal of yen arbitrage funds would trigger a decline in the crypto circle," but they probably didn't expect this outcome. BTC reversed directly from $84,418 in a V-shape, surging to $88,376, an increase of over 4,000 points. This scene indeed confirms the saying—when bad news is exhausted, it often marks the beginning of good news.

But the key is to understand the essence of the Bank of Japan's rate hike this time. On the surface, raising interest rates by 25 basis points to 0.75% seems like tightening monetary policy. But anyone who understands macroeconomics knows that this is still far below the inflation level. To put it plainly, depositing money in banks is still losing money, and the overall monetary environment remains fundamentally loose. The arguments about a large-scale liquidation wave haven't been reflected in market data; instead, the panic sell-offs triggered earlier have been absorbed by institutions.

Looking at the US side, CPI has fallen to 2.7%. What does this signal? It basically clears the way for the rate cut that started in January. From a macro perspective, whether it's the decline in inflation data or the shift in central bank policies, both are creating conditions for mainstream cryptocurrencies to rise. The recent Japanese rate hike, this "final major negative factor," has settled, and instead, it has provided institutions with a legitimate window to start bottom-fishing. From a macro cycle perspective, such timing often marks the prelude to a market reversal breakout.