For over 30 years, Japan exported the cheapest currency in history. Near-zero interest rates, infinite liquidity, and trillions borrowed in yen, invested in all asset classes on Earth.
That era ended this week.
The numbers that no one talks about:
The Bank of Japan's holdings of exchange-traded funds: $534 billion.
The timeline for disposing of this money, recently announced: over 100 years. Probability of raising the interest rate on December 19: 90%.
The new interest rate: 0.75%, the highest since 1995.
Japan's holdings of U.S. Treasury bonds: 1.189 trillion dollars. The largest foreign holder.
The yield on Japanese government bonds for 10 years: 1.96%, the highest since 2007.
Bond yields for 30 and 40 years: unprecedented record numbers.
The pattern that no one wants to admit:
The Bank of Japan raised the interest rate in March 2024. Bitcoin price dropped by 23%.
The Bank of Japan raised the interest rate in July 2024. Bitcoin price dropped by 26%.
The Bank of Japan raised the interest rate in January 2025. Bitcoin price dropped by 31%.
The date of December 19 is approaching.
Here’s what has changed:
The Bank of Japan is no longer buying, but selling. For the first time in history, a major central bank is liquidating accumulated assets through quantitative easing, not by slowing down purchases, but by reversing them.
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