🚨 The global financial landscape undergoes a dramatic shift! The era of yen arbitrage comes to an end, and the crypto market enters a revaluation phase.
Japan’s thirty-year super-loose monetary policy myth is officially over💥
Over the past thirty years, the yen has been an invisible driver in the crypto market.
Zero interest rate policies made the yen the cheapest financing channel worldwide, with trillions of dollars in arbitrage funds flowing continuously: borrowing yen → exchanging for USD → aggressively buying Bitcoin, US stocks, and US bonds. Behind every major crypto rally, you can find the influence of cheap yen funding.
The turning point has arrived. This week, the Bank of Japan implemented its most aggressive rate hike in thirty years, triggering a chain reaction in the crypto world:
First, the cost of borrowing yen skyrocketed, completely eliminating arbitrage opportunities.
Second, those long-standing arbitrage positions are being forced to close, with trillions of dollars flowing back to Japan, meaning a large amount of crypto assets will be sold to repay debts.
Third, an unprecedented wave of selling pressure is imminent. Panic sentiment is ready to ignite.
This is not just a simple rate hike — it’s a structural seismic shift in global liquidity. The era of cheap money has ended, and asset revaluation has officially begun.
Crypto enthusiasts must watch for these signals:
Will market volatility spike sharply? Are Bitcoin and US stocks starting to decline in sync? Can your positions withstand the impact of passive deleveraging? Will the support levels of mainstream coins hold? Will funds flock into stablecoins for safety?
An era has ended, from unlimited water sources to limited supply. Can the crypto market carve out an independent trend, or will it continue to be dragged down by traditional finance? The answer to this question may be revealed in the coming weeks.
Opportunities are hidden within volatility. Some are already quietly positioning themselves. Will you choose to panic and exit, or to stealthily position against the trend?
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🚨 The global financial landscape undergoes a dramatic shift! The era of yen arbitrage comes to an end, and the crypto market enters a revaluation phase.
Japan’s thirty-year super-loose monetary policy myth is officially over💥
Over the past thirty years, the yen has been an invisible driver in the crypto market.
Zero interest rate policies made the yen the cheapest financing channel worldwide, with trillions of dollars in arbitrage funds flowing continuously: borrowing yen → exchanging for USD → aggressively buying Bitcoin, US stocks, and US bonds. Behind every major crypto rally, you can find the influence of cheap yen funding.
The turning point has arrived. This week, the Bank of Japan implemented its most aggressive rate hike in thirty years, triggering a chain reaction in the crypto world:
First, the cost of borrowing yen skyrocketed, completely eliminating arbitrage opportunities.
Second, those long-standing arbitrage positions are being forced to close, with trillions of dollars flowing back to Japan, meaning a large amount of crypto assets will be sold to repay debts.
Third, an unprecedented wave of selling pressure is imminent. Panic sentiment is ready to ignite.
This is not just a simple rate hike — it’s a structural seismic shift in global liquidity. The era of cheap money has ended, and asset revaluation has officially begun.
Crypto enthusiasts must watch for these signals:
Will market volatility spike sharply? Are Bitcoin and US stocks starting to decline in sync? Can your positions withstand the impact of passive deleveraging? Will the support levels of mainstream coins hold? Will funds flock into stablecoins for safety?
An era has ended, from unlimited water sources to limited supply. Can the crypto market carve out an independent trend, or will it continue to be dragged down by traditional finance? The answer to this question may be revealed in the coming weeks.
Opportunities are hidden within volatility. Some are already quietly positioning themselves. Will you choose to panic and exit, or to stealthily position against the trend?