The biggest financial secret in the world has just ended
For more than 30 years, Japan has exported the cheapest currency in history. Near-zero interest rates, infinite liquidity, and trillions borrowed in yen, invested across all asset classes on Earth.
That era ended this week.
The numbers that no one talks about:
The Bank of Japan's holdings of exchange-traded funds: $534 billion.
The timeline for disposing of this money, recently announced: over 100 years. The likelihood of raising interest rates on December 19: 90%.
The new interest rate: 0.75%, the highest since 1995.
Japan's holdings of U.S. Treasury bonds: $1.189 trillion. The largest foreign holder.
The yield on 10-year Japanese government bonds: 1.96%, the highest since 2007.
Yields on 30- and 40-year bonds: unprecedented record numbers.
The pattern that no one wants to acknowledge:
The Bank of Japan raising interest rates in March 2024. The price of Bitcoin fell by 23%.
The Bank of Japan raised interest rates in July 2024. The price of Bitcoin fell by 26%.
The Bank of Japan raised interest rates in January 2025. The price of Bitcoin fell by 31%.
The date of December 19 is approaching.
Here’s what has changed:
The Bank of Japan is no longer buying, but selling. For the first time in history, a major central bank is unwinding accumulated assets through quantitative easing, not by slowing purchases but by reversing them.
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