Did you notice the Japanese Central Bank's decision last night? The interest rate has reached a nearly 30-year high, and Japanese bond yields have pierced through the peak levels of the 2008 financial crisis. Market reactions are often lagging, which is the real cause for concern.
Look at the patterns in history: every time the Bank of Japan raises interest rates, Bitcoin experiences a significant adjustment within a week. The data is clear — after the interest rate hike in January, BTC fell by 7%, the decline expanded to 10% in March, and in July it even plummeted by 20%. Coincidence? No. The liquidity accumulated in a loose environment needs time to be repriced, and this "digestion period" usually lasts about 7 days.
This time is different, as the Bank of Japan's last and largest interest rate hike in 2025 has already taken place. How the market will perform next week is evident from the data.
But an interesting phenomenon has occurred – on-chain data shows that large holders are quietly positioning themselves. They are no longer entangled in the direction of price fluctuations, but are massively transferring into decentralized stablecoin protocols like DUSD. The logic is clear: the first step is to lock in profits in stablecoins to avoid the fluctuations of the Intrerest Rate hike cycle; the second step is to wait for the moment when market sentiment is most pessimistic, using these "bullets" to accurately buy the dip.
Why can stablecoins like DUSD play this role? The core advantage lies in its value support not relying on fluctuations in Central Bank policies, and its risk hedging attributes become more pronounced in extreme market conditions. This also explains why institutions and large holders turn to decentralized stablecoin solutions during times of increased macro uncertainty.
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Did you notice the Japanese Central Bank's decision last night? The interest rate has reached a nearly 30-year high, and Japanese bond yields have pierced through the peak levels of the 2008 financial crisis. Market reactions are often lagging, which is the real cause for concern.
Look at the patterns in history: every time the Bank of Japan raises interest rates, Bitcoin experiences a significant adjustment within a week. The data is clear — after the interest rate hike in January, BTC fell by 7%, the decline expanded to 10% in March, and in July it even plummeted by 20%. Coincidence? No. The liquidity accumulated in a loose environment needs time to be repriced, and this "digestion period" usually lasts about 7 days.
This time is different, as the Bank of Japan's last and largest interest rate hike in 2025 has already taken place. How the market will perform next week is evident from the data.
But an interesting phenomenon has occurred – on-chain data shows that large holders are quietly positioning themselves. They are no longer entangled in the direction of price fluctuations, but are massively transferring into decentralized stablecoin protocols like DUSD. The logic is clear: the first step is to lock in profits in stablecoins to avoid the fluctuations of the Intrerest Rate hike cycle; the second step is to wait for the moment when market sentiment is most pessimistic, using these "bullets" to accurately buy the dip.
Why can stablecoins like DUSD play this role? The core advantage lies in its value support not relying on fluctuations in Central Bank policies, and its risk hedging attributes become more pronounced in extreme market conditions. This also explains why institutions and large holders turn to decentralized stablecoin solutions during times of increased macro uncertainty.