What impact will Japan's interest rate hike have on the crypto market?

- The RMB has already fallen to the 6 range against the US dollar. Will the RMB continue to depreciate against the US dollar?

I think this depends on the long-term and short-term perspectives. I look at the long-term trend, and from a market perspective, I tend to believe that the RMB will gradually depreciate against the US dollar.

However, in the short term, it will be affected by many factors, causing certain fluctuations.

To determine whether the current strengthening of the RMB is a long-term trend or short-term fluctuation, I would deduce it from another perspective:

For a country of considerable size, the more developed its economy, the stronger its currency should theoretically be. In this case, if the country has a choice, it will generally be happy to allow its currency to be freely convertible, so that it can attract global capital, which is equivalent to it sucking the "blood" of the world.

Therefore, if the current strengthening of the RMB truly reflects a change in long-term trends, then theoretically the government should further relax the barriers to capital inflows and outflows, as this would attract more foreign investment and further boost economic development. Furthermore, we should see news reports of foreign capital pouring into the country and increasing domestic investment, but we don't seem to be seeing these reports or reliable data. Looking at the government's actual policy actions, recent actions (whether raising the threshold for outbound remittances or cracking down on crypto assets again) seem more like controlling capital outflows, concerned about domestic funds leaving the country. This trend has been tightening for several years and continues to this day. The current "strengthening" of the RMB and the actual tightening of capital controls are contradictory. In this situation, I will look at the actions, not the appearances—just like when judging a person, we should look at what their actions mean, not how flashy their outward appearance is. Furthermore, simply converting RMB to USD domestically and depositing it in a domestic bank to earn USD interest has very limited significance. The greater significance of allocating USD lies in global asset allocation—a crucial measure that enabled Japan, both businesses and individuals, to maintain economic security and avoid being crushed by the misfortunes of the era during its lost 30 years. Therefore, from these perspectives, I'm less concerned about short-term RMB/USD exchange rate fluctuations and more focused on long-term trends. - Recently, I've seen many AI Agents on Binance Alpha experiencing a continuous upward trend. Could it be that the Virtual platform can't compete with Binance Alpha? What are the advantages of the Virtual platform? I'm not familiar with Binance's Alpha platform and have never participated in it, so I can't comment on its AI Agents and their prices. However, from the perspective of the launch platform alone, Virtual doesn't offer much in terms of technology. It has a first-mover advantage, but this advantage is unlikely to become a barrier to entry. I think its most noteworthy aspect isn't the launch platform, but rather its ACP protocol and the AI ​​economy built around it. If this protocol can create an economy based on AI Agents, then this project will have a very high barrier to entry and great potential—I believe this is not only the development direction of this project itself but also the direction that the entire AI + Crypto sector should strive for and develop. How Much Impact Will Japan's Interest Rate Hike Have on Cryptocurrency? Recently, many media outlets, including some economists (such as the well-known Professor Lang), have been discussing the potential impact of a Japanese interest rate hike. The reason for this focus is primarily because during Japan's lost 30 years, numerous Japanese companies, conglomerates, and individuals borrowed yen at extremely low costs (nearly zero interest rates) and invested extensively in markets worldwide. This has led many to believe that the flood of low-cost yen played a crucial role in the decades-long bull market in US stocks. Now, with Japan raising interest rates, there are concerns that these funds will be withdrawn from overseas markets (especially US stocks) and returned to Japan. Once those markets lose this large amount of liquidity, they may collapse. This concern has some merit, but I feel the impact is exaggerated. On the one hand, even if Japan raises interest rates, the impact of capital flowing back to Japan may not be as significant as imagined; on the other hand, I think the financial markets have already prepared for such consequences. Therefore, overall, I don't think there will be any impact, but it won't be too terrible. As for the impact on the crypto market, I really hope it will drive prices down so I can start dollar-cost averaging again.