Recently, the global financial community has been paying close attention to a major event: the Bank of Japan announced a rate hike, their first in 30 years. The interest rate was raised abruptly to 0.75%.

At first glance, it sounds like bad news, but the market reaction is quite interesting. After the announcement, the Japanese stock market surged, U.S. stocks followed higher, and even Bitcoin performed steadily. This is somewhat intriguing—usually, rate hikes are seen as bearish, so why did it become a catalyst instead?

**Why did the market not fall but rise?**

First, this rate hike had already been digested by the market. Investors had prepared psychologically in advance, so when the official confirmation came, it actually reassured the market. The logic of "bad news is already priced in" applies here—uncertainty turned into certainty, and the dissipating uncertainty made the market more stable.

Second, let's look at the actual cash situation. Although rates increased, Japan's real interest rate is still negative. The official rate of 0.75% compares to over 3% inflation, and the result is clear—liquidity in the market remains ample, and there is still plenty of money. From this perspective, the rate hike was relatively moderate and didn't feel like a real tightening.

Additionally, Japan's economy is shaking off decades of deflation. The central bank's willingness to raise rates indicates renewed confidence in economic prospects. For the global market, losing a long-term "sick patient" is actually a positive signal.

**But this optimism warrants a question mark**

The Bank of Japan Governor has already signaled that the pace of rate hikes may not be over. If further increases continue, global financing costs will gradually rise. For BCH, ZEC, and the entire cryptocurrency market, higher "costs" of money are usually not good news. We may be saying goodbye to the phase of "buying blindly," and entering an era where we need to carefully evaluate project fundamentals.

**What should we focus on next?**

Market attention will shift from "When will the Fed cut rates" to "How much will Japan raise rates." This shift indicates a change in the focus of global monetary policy. The performance of different currencies may start to diverge, and the broad rally of all assets together will become less common. Smaller coins and projects without solid fundamentals may face greater pressure, while projects with real application and technical backing will be re-evaluated by the market.

**Advice for ordinary investors**

This may not be the best time for aggressive positioning. Consider adjusting your strategies: moderately reduce leverage exposure, keep more cash reserves, and stay on the sidelines. The market is re-pricing, and waiting for clearer direction or better entry points is often wiser than rushing in.

In the short term, the market is digesting the disappearance of uncertainty. But in the long run, the policy evolution of major global central banks, especially Japan, will continue to influence the valuation environment of crypto assets. This is both a test for the market and a filter for truly valuable projects. In this process, those who survive will be the ones with real value.