Friends, have you recently felt a bit confused about the market's decline? Bitcoin is down, gold is down, and US stocks are down... It seems like the whole world agreed to dive together.
Many people ask: What does Japan raising interest rates have to do with our global assets?
Today, I will break through this layer of window paper for you! Behind this, hides a massive game worth 4 trillion dollars, and Japan is the 'master of the faucet' controlling the main switch of this game.
25 years of 'zero-cost' borrowing has nurtured a 4 trillion giant.
Simply put, for the past 25 years, Japan has maintained zero interest rates or even negative interest rates. This doesn't mean ordinary people can borrow money without interest, but international institutions and hedge funds can borrow massive amounts of yen at almost zero cost.
How do they play? The trick is simple to the point of boredom:
Borrow cheap yen.
Convert to dollars.
Buy high-yield assets like Bitcoin, US stocks, and gold.
As long as the assets are rising and the costs are nearly zero, this game can continue indefinitely, with the snowball getting bigger. To date, this 'borrow yen, speculate globally' fund has grown to nearly $4 trillion!
When the faucet is tightened, the global market collectively 'loses blood.'
Now, the Bank of Japan has started raising interest rates. What does this mean?
The cost of borrowing yen has increased.
The yen may appreciate, causing borrowers to suffer more when repaying debts.
Those international capital players who have been 'playing the shell game' for over twenty years, their first reaction is not to sit down for a meeting, but rather:
'Sell! Immediately sell the Bitcoin and US stocks in hand, convert to yen, and pay off the debt first!'
So, what you see is not that these assets have suddenly deteriorated overnight, but rather that the global market is simultaneously being 'bled dry.' The ones that rise the fastest and are speculated on the hardest (like cryptocurrencies) are naturally the first to be sold off.
In the eye of the storm, where is your 'Noah's Ark'?
Understanding this logic leads you to a harsh reality: when Japan, the 'global faucet,' is tightened, almost all assets relying on this water flow for nourishment (from US stocks to Bitcoin) will tremble accordingly.
So, an ultimate question arises: Is there an asset whose value does not depend on whether the Japanese (or any country's) central bank tightens or loosens the faucet?
The answer is: Yes. It is called Decentralized USD. Its goal is to become that 'Noah's Ark' that does not rely on external tides.
Think about it, when the traditional financial system is shaken by a country's interest rate adjustment, what do you need? Is it another 'story coin' that might be manipulated? No, what you need is absolute stability and independent certainty.
Take USDD as an example, it represents such a solution:
Not relying on any central bank: Its value stability does not depend on the handouts from the Federal Reserve or the Bank of Japan, but is secured through over-collateralized crypto assets on-chain. All reserves are transparent and traceable.
Rules are code: Its operation is driven by decentralized smart contracts and community consensus, with no centralized committee able to suddenly announce 'interest rate hikes' or 'easing.' Rules are locked and cannot be changed by anyone.
Become the 'stabilizing force' amid turmoil: When $4 trillion in arbitrage funds turn around and trigger market panic, allocating a portion of assets like USDD provides a safe haven independent of the traditional financial storm for your wealth. It allows you to calmly observe and seize opportunities while others are forced to sell.
#USDD shows trust through stability.
Therefore, what Japan's interest rate hikes teach us is far more than just macroeconomic knowledge. It is a vivid lesson in risk education: when all your assets are tied to the same fragile liquidity system, a decision made far away in Tokyo is enough to severely injure you.
True wisdom lies in finding a cornerstone that does not go with the flow before the storm arrives. When all the world's faucets may be tightened, having your own 'autonomous water source' is the greatest safety.
