Recently, the global financial markets have reached a critical moment. The Bank of Japan announced an interest rate increase to 0.75%. Behind this seemingly moderate number, the logic of global asset pricing is being reshaped.

## Why does this interest rate hike have such a big impact?

This is not just a simple rise in interest rates. For the past 30 years, Japan's interest rates have remained below 0.5%, and the cheap yen has supported massive global arbitrage trades. Now this era is coming to an end.

The data is very intuitive: just 24 hours after the interest rate hike, over $1.8 billion was converted into decentralized stablecoins through the crypto network, seeking refuge. The market is speaking with real money—when sovereign currencies lose their cheap attributes, stablecoins become the new tool for capital preservation.

## What signals are hidden in the Central Bank governor's wording?

The dovish remarks by Bank of Japan Governor Kazuo Ueda can easily be misinterpreted. On the surface, he states that "financial conditions remain accommodative," but in reality, he is implying that policy adjustments are far from over.

He specifically mentioned "the uncertain neutral Intrerest Rate position"—this means that rate hikes may continue at any time, and any rebound is merely a window for escape. At the same time, binding the results of the spring struggle (wage negotiations) suggests that the Central Bank has partially handed over the initiative for rate hikes to the market, with policy uncertainty reaching a new high.

Behind these subtle expressions is the accelerated reallocation of global capital. Multinational companies are facing rising cost pressures, and arbitrage trading settlements are speeding up—while decentralized stablecoins happen to become a new option in this round of changes.

As the rules of the traditional financial system change, the role of the crypto market is also quietly evolving.