BREAKING

🇯🇵 Bank of Japan raises interest rates to 0.75% — the highest level in 30 years

Now let’s break down what this really means for global markets — and crypto

For decades, Japan was one of the largest sources of cheap global liquidity. Investors could borrow Japanese yen at near-zero rates and deploy that capital into stocks, bonds, gold, real estate, and crypto.

This strategy, known as the yen carry trade, worked because borrowing costs were extremely low while risk assets offered higher returns.

⚠️That era is changing.

With the Bank of Japan hiking rates, borrowing yen is no longer cheap. As a result:

Fewer investors will open new yen-funded positions

Existing carry trades may start unwinding

Capital begins flowing back into Japan

📉 The impact? Global liquidity tightens. And when liquidity dries up:

Risk assets struggle

Volatility increases

Markets turn cautious

💱 Crypto Market Impact Crypto is highly liquidity-driven. Reduced global liquidity usually means:

Short-term bearish pressure

Lower risk appetite

Stronger moves only after liquidity stabilizes again

Bottom line:

Japan’s rate hike may seem local, but its effects are global. Until markets adjust to this shift in liquidity, expect choppy and cautious conditions across risk assets — including crypto.

📊 Stay alert. Liquidity moves markets.$BTC