Be wary of the Bank of Japan’s rate hike next Tuesday (March 19)
The probability of raising interest rates at the Bank of Japan's meeting on the 18th and 19th of this month is about 80%. In August 2000, the Bank of Japan raised interest rates to 0.25%. Just a few weeks later, the Nasdaq bubble burst and began a long-term More than two years of downturn.
When U.S. stocks fall, the crypto market will also be affected.
Then interest rates were raised in July 2006 and February 2007. In the days after the second interest rate hike, China's stock market fell nearly 9% in a single day. Still the biggest one-day drop for our market this century. A few months later, several of Bear Stearns' credit hedge funds collapsed, triggering the global financial crisis.
If the Bank of Japan raises interest rates, U.S. stocks will correct by about 10%, and the correction in the crypto market should not be less than 20%.
In the long term (more than three years), there is no need to pay attention to the impact of this incident. Short-term (within one year) traders are advised to avoid it.