#BOJRateHikesBackontheTable Japan Signals a Global Monetary Shift

For decades, the Bank of Japan (BOJ) anchored global markets with ultra-loose monetary policy — near-zero or negative rates, aggressive yield-curve control — supplying cheap yen that quietly fueled risk-taking worldwide. This policy underpinned global carry trades, enabling liquidity to flow into equities, emerging markets, and speculative assets, including crypto.
Now, that foundation is cracking. Persistent inflation, rising wages, and prolonged yen weakness are driving serious discussions of rate hikes and policy normalization. The BOJ’s rhetoric has shifted from “temporary inflation” toward structural change.
Higher rates would likely strengthen the yen, unwind long-standing carry trades, and push Japanese bond yields higher, forcing global investors to rebalance portfolios. Liquidity that once flowed freely into risk assets may tighten, creating subtle yet meaningful headwinds for markets, including Bitcoin and major altcoins.
Looking forward, this marks a broader transition in global monetary dynamics. The era of synchronized easy money may be ending. Markets will need to adapt to more selective capital flows, less suppressed volatility, and macro policy divergence shaping price action worldwide.