The Bank of Japan's rate hike has finally landed, but the more painful part is still to come—officials are hinting that further increases might be necessary. Now, the market hasn't even fully adjusted, and a new wave of concerns is already spreading.

Arbitrage trading is most afraid of rising interest rates. Once rate hike expectations strengthen, funds borrowing low-interest yen to invest in crypto assets will have to exit. When funds withdraw, will the short-term correction pressure in the crypto market become even greater? This question is now in front of us.

The next trend largely depends on whether the Bank of Japan will actually take further action. Tightening monetary policy is often the killer for arbitrage trading, and the crypto market has historically been easily affected in such environments.