The Bank of Japan's rate hike has triggered a wave of market changes. Recently, the most consulted topic remains the old question—whether to hold or sell the BTC, BIFI, and other coins in your portfolio. So today, let's skip the roundabout and analyze each coin individually to clarify the logical changes during the rate hike cycle.

**From the perspective of BTC**

As the market's bellwether, BTC is essentially pulled by two forces: "hedging" and "liquidity." The rate hike in Japan will indeed attract capital back, which in the short term may suppress BTC's performance. However, on the other hand, the Federal Reserve is in a rate-cutting cycle, providing reverse support for BTC. Plus, with the current global instability, BTC's value as a hedge is actually being reinforced. So the reality is: short-term sideways consolidation for BTC is normal, but the long-term logic still holds.

If your cost basis is below $40,000, you can hold with confidence. If your cost basis has already risen above $45,000, consider reducing some positions to lower your average cost. A detail worth paying attention to is trading volume. Continuous decline in volume indicates the market is still in a wait-and-see phase; don't think about adding to your position in the short term. Conversely, if trading volume suddenly surges, it often signals a new market rhythm.

**Now, about BIFI**

BIFI is a benchmark in DeFi, driven mainly by the pursuit of capital yields. In a rate hike environment, the borrowing costs globally will rise, and the hot money attracted by DeFi protocols will start to withdraw, moving back to traditional financial markets for stable fixed income. This means BIFI faces pressure from slowed or even reversed capital inflows, making short-term suppression likely. It is advisable to reduce positions or adopt a wait-and-see approach for such tokens.