Tomorrow, Japan may raise interest rates to 0.75%, hitting a new high in nearly 30 years, with the real impact point being "capital flow."
Japan holds approximately 1.18 trillion U.S. dollars in government bonds, and raising interest rates means an increase in debt repayment costs, which will inevitably trigger asset structure adjustments.
In simple terms, it means selling dollar assets and converting them back to yen to repay debts.
This kind of selling does not consider sentiment or select varieties; it prioritizes selling whoever has the best liquidity.
U.S. stocks, gold, and cryptocurrency assets are naturally the first to be affected, and short-term fluctuations are bound to intensify.
But remember one thing:
Opportunities only arise after risks are released.
Historical experience has repeatedly proven—
"When the bad news is fully priced in, good news follows,"
For institutions, extreme volatility often marks the starting point for medium to long-term positioning.
There is short-term impact, but recovery is expected afterward.
After this asset swap ends, the market may enter a new cycle of value repricing.
