After the release of the heavy news that the Bank of Japan is raising interest rates, the entire network was expecting a BTC crash. Instead, it surged by 2% directly, breaking through the $87,000 mark within an hour. Traders who were still heavily shorting the day before are now probably staring at the K-line chart in confusion: what kind of show is this market putting on?

As a veteran who has been watching the market for nearly ten years, I’ll break down this show for you today. The core logic is actually simple—what you see as bad news has long been a trap set by institutions to harvest profits.

Let’s start with the most painful reality: why does such a heavy piece of bad news as a rate hike actually trigger a rally? The answer is straightforward: the market never plays by the rules. The news of the Bank of Japan raising rates by 25 basis points was actually anticipated by the market a month ago. That previous correction? Basically, institutions were deliberately scaring retail investors into shorting, so they could lock in their positions in the opposite direction. Now that the news has actually materialized, it turns into the old trick of “bad news is good news once it’s out,” with institutions pushing the market up while retail investors chasing shorts get pressed down repeatedly. This is the survival rule in the crypto world: pre-position based on expectations, then reverse the operation once the news is confirmed.

The most important thing to watch is the central bank governor’s speech at 2:30 PM. The market is currently speculating: “Will there be more rate hikes?” If the speech is moderate and hints that rate hikes will slow down, the market will likely continue to fluctuate upward; but if a hawkish signal is given, indicating further tightening of liquidity, then be cautious—sharp drops could happen at any moment. The rhythm of this rally is unpredictable, and traders can be caught in both directions at any time. Never underestimate this.