The Bank of Japan is holding a policy meeting today and tomorrow, with the results announced on the 19th. Yu哥 believes there is a high probability of a rate hike, which is a major negative factor suppressing risk assets recently! Last night, the market had already priced in some of the impact in advance. Plus, the CPI data will be released tonight at 9:30, making recent market movements quite exciting!

First, let's talk about this policy meeting. In the past, many institutions borrowed cheap yen to exchange for dollars to buy higher-yield assets. Now, with Japan raising interest rates, borrowing costs increase, and the yen will appreciate. This makes such trades less profitable. Institutions will definitely rush to sell other assets, convert back to yen to repay loans, leading to capital outflows and significant market pressure.

Looking at CPI, which reflects price levels: if inflation is low, the Federal Reserve is more likely to cut rates in January, making the dollar less valuable, and funds will flow into other high-yield assets; if inflation is high, the Fed may hold off on rate cuts, causing funds to withdraw from other assets to buy dollars.

Overall, market uncertainty has increased significantly. If I had to give a trading suggestion, it would be to short on rallies! Everyone should operate cautiously, control risks well, avoid blindly following the trend, and closely monitor market dynamics! $ETH $BNB $SOL