Bank of Japan just hiked rates to 1.0% — highest in 30+ years.

This matters way more than people realize. Japan's been the world's ATM for carry trades forever. Borrow yen at ~0%, invest anywhere else with higher yields. That trade just got significantly more expensive.

Three things to watch:

1. Global liquidity tightening — yen carry unwind means forced selling across risk assets. We saw this movie in August 2024, might be getting a sequel.

2. Yen strength incoming — $USDJPY probably heads lower. Stronger yen = deflationary pressure exported globally, especially hits emerging markets and commodity prices.

3. Crypto correlation risk — if this triggers broader deleveraging, $BTC and alts won't be immune. Risk-off means everything correlated goes down together first, decouples later.

The era of free Japanese money is officially over. 30 years of ultra-loose policy reversing in real-time. Markets priced for cheap liquidity everywhere are about to get a reality check.