🚨Japan may raise interest rates! Is the global financial landscape about to change?
Brothers, don't think this is just about Japan; its impact is strong enough to affect every asset market worldwide.
🔥Why is Japan's interest rate hike a global event?
Because for decades, Japan has been the world's largest "zero interest rate + quantitative easing center." In other words, the bull market for global assets has all benefited from the "cheap funds" released by Japan.
Once Japan raises interest rates, this money may——
➡️ Flow back to Japan from around the world
➡️ Drain U.S. Treasuries, U.S. stocks, and emerging markets
➡️ Mark the official start of global liquidity tightening.
In the past, everyone said the Federal Reserve was the world's central bank, but this year a strange phenomenon has emerged:
With a wave of Japan's hand, global markets start to shake.
🧨The U.S. is cutting rates while Japan is raising them——the rarest "interest rate differential reversal" in the world.
If the Federal Reserve really starts to cut rates this year while Japan goes in the opposite direction, an unprecedented scene will occur:
• U.S. dollar interest rates ↓
• Yen interest rates ↑
• The interest rate differential between the U.S. dollar and yen narrows
What does this mean?
➡️ The "yen carry trade" that has been in place for decades may begin to unravel
➡️ Funds will no longer be willing to borrow cheap yen to buy U.S. Treasuries/U.S. stocks/gold/cryptos
➡️ The underlying funding structure of global risk assets will be reshuffled
This is not a decision of one country; it is an earthquake that affects the entire financial system.
🌍What does this mean for the global market?
📉 U.S. stocks may come under pressure
AI stocks and tech stocks may revert to fundamentals if they lose cheap leverage.
📉 U.S. Treasury yields may experience severe volatility again
Foreign funds withdraw, forcing the U.S. to continue issuing high-level bonds.
📉 Emerging markets under the most pressure
Asia and Latin America may face another wave of capital outflows.
📈 The yen may welcome a super reversal trend
The yen has depreciated for decades; it may truly be at the bottom.
📈 Cryptocurrency market? Short-term volatility may intensify, but long-term could benefit
Because when the old global order is reshuffled, new assets will emerge.
🚀In summary
Japan's interest rate hike is not ordinary news; it is the largest "underlying logic shift" in the global financial system in twenty years.
In the past, it was "U.S. interest rate hikes impacting the world,"
In the future, it may become:
👉 Misalignment of Japan-U.S. policies = A black swan for global liquidity. $ETH
