⚡ The Bank of Japan has just announced an interest rate hike to 1.50%, the highest record in 46 years. To be honest, as soon as this news broke, global markets started to tremble—because it could lead to a massive withdrawal of $500 billion in funds.
How to understand this power? Imagine that 500 billion dollars is equivalent to directly siphoning off the scale of a Swiss economy from the global financial system; the impact is not just significant.
The chain is like this:
The appreciation of the yen → Japanese capital is tightening its escape from overseas → US Treasuries, US stocks, and various ETFs are being frantically sold off → Dollar liquidity suddenly tightens. This is a classic reverse operation of arbitrage trading, and once it starts, it will trigger a chain reaction across markets.
What does it mean for the crypto world? To put it bluntly, assets with high volatility like BTC find it hard to stand alone. When global risk assets are being indiscriminately bombarded, crypto assets usually can't escape either. It's crucial to keep a close eye on the Bank of Japan's holdings, especially their buying and selling signals in U.S. Treasury bonds and U.S. stocks.
The most heart-wrenching question is - when Japan last raised interest rates in 1978, the United States was struggling in the quagmire of stagflation. Will this round of "yen storm" be the last straw that breaks this bull market? What do you all think?
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
9 Likes
Reward
9
3
Repost
Share
Comment
0/400
ThreeHornBlasts
· 2h ago
The Bank of Japan's move is really aggressive—throwing 500 billion directly. Will the crypto world have to follow as sacrificial offerings? Or can this time turn the tide and reverse the situation?
View OriginalReply0
OneBlockAtATime
· 12-23 17:52
500 billion USD arbitrage reverse? The crypto world can't really show off now, no matter how strong BTC is, it can't escape this wave of whipsaw.
View OriginalReply0
LayerZeroHero
· 12-23 17:48
Here it comes again, the Bank of Japan has directly rubbed the global market into the ground, $500 billion just vanished, the crypto world really can't escape this time.
#BTC资金流动性 $ZEC $SOL $ETH
⚡ The Bank of Japan has just announced an interest rate hike to 1.50%, the highest record in 46 years. To be honest, as soon as this news broke, global markets started to tremble—because it could lead to a massive withdrawal of $500 billion in funds.
How to understand this power? Imagine that 500 billion dollars is equivalent to directly siphoning off the scale of a Swiss economy from the global financial system; the impact is not just significant.
The chain is like this:
The appreciation of the yen → Japanese capital is tightening its escape from overseas → US Treasuries, US stocks, and various ETFs are being frantically sold off → Dollar liquidity suddenly tightens. This is a classic reverse operation of arbitrage trading, and once it starts, it will trigger a chain reaction across markets.
What does it mean for the crypto world? To put it bluntly, assets with high volatility like BTC find it hard to stand alone. When global risk assets are being indiscriminately bombarded, crypto assets usually can't escape either. It's crucial to keep a close eye on the Bank of Japan's holdings, especially their buying and selling signals in U.S. Treasury bonds and U.S. stocks.
The most heart-wrenching question is - when Japan last raised interest rates in 1978, the United States was struggling in the quagmire of stagflation. Will this round of "yen storm" be the last straw that breaks this bull market? What do you all think?