The last major event in the financial market in 2025 is the Bank of Japan's interest rate hike.

It is known that the Bank of Japan will hold a meeting on the 18th and 19th.

The market consensus is to raise the interest rate by 25 basis points to 0.75%.

For a considerable amount of time, Japanese interest rates have been close to 0.

Many investors and Japanese institutions are engaging in 'yen carry trades'.

In simple terms, it means borrowing yen to invest in U.S. Treasuries or U.S. stocks.

Now that Japan is starting to raise interest rates, it may even begin an interest rate hike cycle,

leading to an increase in borrowing costs for yen, and the profit margin for carry trades disappearing.

Although 0.75% is still a relatively low interest rate level,

it will enhance market expectations for yen appreciation.

With the dual boost of rising interest rates and expectations of yen appreciation,

it will cause liquidity shocks in the market in the short term.

Japan is one of the countries with the highest holdings of U.S. Treasuries and U.S. stocks globally.

If the interest rate only rises to 0.75%, it can be considered already priced in.

The Bank of Japan should not suddenly imply:

'We will raise interest rates again multiple times in 2026.'

This will definitely trigger a sell-off of risk assets and a repatriation of yen.

That would really show no respect to President Trump 😂

On my side, interest rates are being lowered, and on your side, they are being raised = no decrease?

Our revolutionary arm has only been linked for a short time #加密市场观察