A major shift could be coming out of Japan and markets might be underestimating it.
There’s a high chance rates get pushed to around 1.00% in June. That might not sound dramatic, but for a country that’s been the backbone of cheap global liquidity for decades, it’s a big change.
This isn’t just a local story. Japan holds over $1.2T in United States Treasuries, meaning any tightening there can ripple across global markets fast.
We’ve seen this play out before. Back in 1994, rate hikes triggered the Great Bond Massacre, wiping out roughly $1.5T. A year later, currency instability forced a quick reversal.
The pattern is clear when Japan tightens, liquidity contracts, and risk assets tend to struggle. Even $BTC has historically reacted with sharp pullbacks following similar moves.
June could end up being more important than most expect, especially if this shift catches the market off guard.