Japan is likely to raise interest rates, and there is a subtle change in the market.

A hint from the Bank of Japan's governor over the weekend stirred the market across the ocean. He mentioned that Japan might raise interest rates, and as soon as he finished speaking, Japanese government bond yields jumped to their highest levels in over a decade. Why does this matter? Because it may lead to unexpected ripple effects.

A simple transmission chain

As the largest overseas holder of U.S. Treasuries, if domestic interest rates in Japan rise, some funds may choose to flow back. This could indirectly push up U.S. Treasury yields. It's important to note that U.S. Treasury yields are a key reference for global asset pricing.

Possible impact on digital assets

This cross-market volatility may bring some emotional disturbances in the short term:

· Increased uncertainty: While the market is eagerly awaiting a rate cut from the Federal Reserve, any reverse “tightening” signals may be amplified.

· Impact on risk appetite: If the appeal of “risk-free” returns rises, some funds may be more cautious in chasing high-risk assets.

Observation and response

In the face of this situation, we can pay attention but should not overreact:

· Distinguish between primary and secondary: Compared to Japan, this week's decisions by the Federal Reserve and U.S. inflation data remain the core focus.

· Understand volatility: If the market experiences fluctuations because of this, it’s essential to recognize that the reasons may be at a more macro level.

· Stay flexible: During periods where multiple macro events intersect, maintaining flexible positions is never a bad thing.

The connections in the global market are becoming increasingly tight, and waves from afar may reach us as well. Keeping an eye on developments and maintaining a calm mindset might be the best response.

(This article is based on publicly available market information analysis and is for reference only) #美联储何时降息？ $BTC $ETH