The Bank of Japan's upcoming monetary policy meeting makes a rate hike almost certain. The so-called "historic move" circulating in the market sounds a bit alarming, but the mainstream expectation is a 25 basis point increase, from the current 0.5% to 0.75%. In simple terms, it's like slowly tightening the faucet rather than suddenly turning it off.

What we really need to watch out for is the movement of arbitrage funds. Over the years, the yen has been in a low-interest-rate environment, becoming a "fuel" for risk asset allocation. Many funds borrow yen to buy highly volatile assets, which is especially common in the crypto market. Now that interest rates are set to rise, these funds might choose to flow back into Japan. Once this capital exits, the crypto market will be under pressure first, and Bitcoin won't be immune either.

The key depends on the governor's stance during the press conference. If the language is moderate, investors might see the rate hike as an "already digested event," and market reactions won't be too intense. But if hawkish signals are sent, short-term volatility will likely amplify significantly, prompting many investors to adjust their positions in advance.

The current strategy is quite simple: be cautious before and after the meeting, keep more cash on hand, and avoid rushing into long positions. There will definitely be opportunities in the next few days, but bottom fishing is better targeted than blind. Stay calm and wait for more suitable entry points, which often yields better returns than reckless trading. Pay special attention to the performance of Bitcoin, WCT, and RESOLV, as they tend to react to market expectations ahead of time.