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🔥 Alarm sounded! Countdown to yen interest rate hike, will liquidity in the crypto space be drained?

As US stocks surge to new highs riding the coattails of the Federal Reserve, the crypto market is stuck in a painful fluctuation— the real eye of the storm may not be in the United States, but in Japan! In the coming week, global markets may face a 'rate hike' earthquake.

You may not care about the Japanese economy, but you must keep a close eye on the historic shift in yen interest rates— this is the 'global cheap money faucet' being tightened!

▎Plain interpretation: The rules of the game have completely changed

• In the past (negative interest rates): Institutions borrowed 100 yen, paid back 99 at maturity.

• Now (positive interest rates): Borrow 100, pay back 101+, funding costs have suddenly surged.

The key point is: this 'cheap money feast' is only open to giants like Buffett; retail investors don’t even have a ticket.

▎Is the arbitrage party about to end?

Why are the big players collectively bullish on Japan? The truth is: borrowing yen at nearly zero cost, converting to dollars, and rushing into US stocks, gold, and cryptocurrencies for arbitrage— this is almost a 'free money' global game.

Once the yen starts raising interest rates, this massive amount of arbitrage capital must quickly flow back to repay debts, or else the interest costs could crush institutions. At that time, asset sell-offs → yen inflows will become a chain reaction, and the crypto space will find it hard to stay unscathed.

▎Bull vs Bear: Federal Reserve vs Bank of Japan

On one side, the Federal Reserve is cutting interest rates to release liquidity, while on the other, the yen interest rate hike is siphoning off liquidity— the policy 'clash' of the two major central banks will only make market volatility more extreme. Keep an eye on Trump's only Dogecoin

【C o n a n】

As the storm approaches, will you choose to hedge in advance or wait for the opportunity to buy on dips?

With expectations of collective sell-offs by institutions, do you have a plan to reduce your positions? Or are you preparing to bottom fish for certain assets?