The news has arrived, and it's happening today. There is a major move in Japan, as the Senate has just approved a supplementary budget of 18.3 trillion yen for the fiscal year 2025, equivalent to about 1.2 trillion U.S. dollars. Among this, over 1 trillion yen is specifically allocated for strengthening defense capabilities.

Let me highlight for everyone: with this amount, Japan's total defense spending for next year will reach an astonishing 11 trillion yen. The most critical point is that, based on Japan's official GDP growth estimates, the proportion of defense spending to GDP will reach 2%.

What does this 2% signify? It's not just about meeting a numerical target; it's also a symbol. This marks that Japan's defense spending has officially reached the benchmark requirements set by NATO for its member countries. Although it is not a NATO member, this move undoubtedly sends a clear strategic signal to the outside world.

This means that in the East Asian region, the competition for strategic security is entering a new phase. More defense budget means more equipment procurement, technological research and development, and potential deployments. Geopolitical tensions often drive up demand for capital to seek safe-haven assets. Historical experience shows that such events, in the long run, will affect the flow of international capital, and the consensus on the value of "hard assets" like gold and Bitcoin may be further reinforced amidst fluctuations.

For us ordinary investors, paying attention to macro trends is not just about watching the excitement. Such geopolitical events are key pieces in understanding the narrative logic and risk preferences of future markets. I will continue to monitor the subsequent developments.

Remember, the wind rises at the end of the green rushes; opportunities and risks are hidden in changes.

I am Niu Ge, bringing you a trader's perspective on the world. #加密市场观察