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#BinanceABCs Yesterday, the Bank of Japan announced another interest rate hike, and Bitcoin fluctuated around 86K. The comments section is filled with the same question: Is it a buying opportunity now? Where is the bottom? To be honest, I don't dare to place a bet, but historical data can reveal quite a bit.
I flipped through the records of the past three years, and it is evident that Bitcoin's reaction can be traced after each rate hike by the Bank of Japan:
Last March, Bitcoin fell 23% to 27%, and it took a full 6 weeks to stabilize. The hike in July was even harsher, with a drop of 26% to 30%. The flash crash on August 5 even briefly broke through the 26,000 bottom, taking 8 weeks to stabilize. The most recent rate hike in January saw a monthly drop of 31%, leading to another 7 weeks of torment.
On average, it drops about 27% each time, and the duration of the downturn is basically locked at 7 weeks.
If history really repeats itself this time, there may be three possible trends:
**Worst Case Scenario**: Drop to 70K (-19%), need to hold on until the end of January next year to recover.
**Compromise plan**: Stop at 75K (-13%), rebound in mid-January.
**Most Optimistic**: Hold 80K (-7%), stabilize within two weeks.
It sounds like the pattern is quite clear, but here comes the question—will it really go according to the script this time?
There are several variables lurking in the shadows: the latest guidance from Ueda and the Bank of Japan on the interest rate hike pace for 2026 could change the game. The end of the year is already a phase of liquidity exhaustion, with institutions waiting for the window period before January next year. Additionally, there's the time bomb of the U.S. triple witching day, where the expiration of trillions of dollars in options could trigger significant market volatility. Any one of these three factors going awry could break the pattern.
But the reasons for the market to return to normal are equally strong: institutional capital flows, a rebound in risk appetite, and the underlying support of long-term allocation demand are all still present.
So how do you actually operate? Past experiences have taught me three hard truths:
**First Rule**: Don't rush to buy the dip on the day of the interest rate hike. In the last three instances, without exception, those who entered the market that day were stuck heavily in the following weeks.
**Article 2**: Be patient and wait for a 6 to 8 week observation period. The true bottom does not appear immediately after an interest rate hike; it usually forms between the 6th and 8th week.
**Article 3**: Keep a close eye on the ETF fund flow signal light. Only a net inflow for 3 consecutive days indicates that institutions have really begun to rebuild their positions, and that is the signal for action.
I won't tell you whether to buy or sell right now, but history does have a way of repeating itself. Whenever everyone is debating "Will this time be different?", the market often tells you in the most direct way — most of the time, it's the same old routine.
$BTC $ETH