The Bank of Japan has completed a historic policy shift over the past year.

In March 2024, Japan raised interest rates for the first time since 2007, adjusting the policy rate from -0.1% to the 0%-0.1% range. This move, seemingly moderate, broke an 8-year period of negative interest rates, and the market began to sense a change in direction.

By July 31, the Bank of Japan implemented an unexpected rate hike, directly raising the rate to 0.25%. This exceeded market expectations and triggered intense volatility across global financial markets—from stocks to cryptocurrencies—feeling the impact of this shock. Traders were caught off guard, and risk aversion surged instantly.

On January 24 of this year, the third rate hike occurred. This time, the increase was the largest—raising the rate to 0.5%, reaching a 17-year high. Three consecutive rate hikes officially marked Japan’s departure from an ultra-loose monetary policy era.

For traders, understanding the underlying logic is crucial: the exit from Japan’s accommodative policy means narrowing arbitrage opportunities and a reallocation of global liquidity. The volatility patterns of assets like BTC and XRP are quietly adjusting as well. Those who can perceive these changes early will master the rhythm of trading.