After the Bank of Japan's rate hike announcement, the crypto market's reaction wasn't exactly straightforward. There was an initial dip, as if the market was pricing in risk in advance; but once the policy was actually implemented, Bitcoin regained the $88,000 level, and Ethereum showed a more noticeable rebound. The overall rhythm was more like "first a wave of tension, then gradual digestion."

It's not that complicated behind this. After the Bank of Japan pushed interest rates to a nearly 30-year high, Bitcoin briefly touched above $88,000, and Ethereum also showed clear signs of rebound. Interestingly, some major coins performed relatively calmly—BNB and SOL didn't surge as much. This actually points to one thing: rate hikes are definitely a tightening signal, but the market doesn't react by dumping just because it hears "Japan rate hike." Investors are still watching variables like US dollar liquidity and US economic data.

So what is the core? Many discussions focus on the logic of "JPY arbitrage trading." There used to be a comfortable strategy: borrow cheap yen, buy US dollar assets or risk assets, and earn the interest rate differential. When expectations of Japanese rate hikes strengthen, the cost of borrowing yen rises, and the yen may appreciate, reducing the attractiveness of this arbitrage. This can force some leveraged funds to reduce risk positions, and high-beta assets like Bitcoin are often the first to be cut.

Therefore, you see this rhythm: before the decision, the market dips first—essentially deleveraging in advance; once the policy is actually implemented, a rebound may occur. The key still depends on subsequent developments in the US.