2026-01-05 10:22:24

The Bank of Japan's rate hike measures seem to suppress the crypto market, but fundamentally they reflect Japan's economic reality. Ueda and his team have no choice — core inflation has already reached 3%, maintaining above 2% for over 40 consecutive months. Prices of essentials like rice and energy are soaring, coupled with the yen hitting a 35-year low, increasing import cost pressures. They can no longer hold back.

From the central bank's perspective, their goal is to achieve a positive cycle of wages and prices, bringing monetary policy back to normal. The Bank of Japan's neutral interest rate range is 1% to 2.5%, but it is still stuck at 0.75%, indicating room for further adjustment. Industry insiders even predict that rates could be raised again by July 2026. For Japan, this is a necessary self-rescue, but for our crypto circle, it’s an early "liquidity drain."

What’s more painful is that global central banks are playing "each for themselves." The Federal Reserve is still hesitating over whether to cut rates and how, the European Central Bank is maintaining a neutral stance watching the spectacle, while Japan is accelerating ahead. In the already tight global liquidity pool, this is equivalent to directly transferring some funds away. Crypto assets are inherently sensitive to capital flows, and in such an environment, short-term volatility is inevitable. Japan is solving its own economic problems, but the cost is shared by global risk assets. This is the reality of a global financial market where prosperity and decline are intertwined.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
7
Repost
Share

Comment

0/400

AmateurDAOWatcher

· 01-06 12:21

Heartbreaking, the Bank of Japan's "self-rescue" is our "cutting flesh." --- So ultimately, it's still liquidity shifting, and we have to bear Japan's problems. --- Wait, does this mean we will continue to be exploited in 2026? Then what coins should I hold? --- Central banks really do their own thing. The Federal Reserve is dithering, Japan has already taken action, and our crypto circle is always the one holding the bag. --- Exactly right, the global financial system is a zero-sum game; no one can escape. --- Ueda and Otaro stood firm; Japan's economy was saved, but our assets died first. This deal is too亏. --- Drawing liquidity again, they start to pump again. I'm used to the feeling of being harvested. --- So is the current crypto market just waiting for the day when the Federal Reserve and the European Central Bank can't sit still anymore?

View OriginalReply0

TradFiRefugee

· 01-05 10:52

Here we go again with the "each doing their own thing" approach, it's really funny. Japan's self-rescue, and we're footing the bill. --- Basically, it's just an excuse to dump, the central bank always has a reason to withdraw liquidity. --- Wait, do we still need to raise interest rates by 2026? Then I better prepare myself mentally in advance. --- The liquidity pool has shrunk so much, no wonder the coins haven't been energetic lately. This wave really hurts. --- Ueda and Otomo owe the crypto circle an apology, but I don't really expect it anymore haha. --- The Federal Reserve is still hesitating, Japan has already started to get serious, the rhythm is completely messed up. --- Global central bank chaos, the ones suffering the most are retail investors like us. --- So the core issue is still liquidity, those who understand, understand. --- A 35-year low, if the yen keeps going like this, it really needs to be rescued, but our coins will have to be sacrificed. --- That’s really heartbreaking, a loss for a loss—this saying is so true.

View OriginalReply0

BlockchainGriller

· 01-05 10:51

Japan's self-rescue, crypto圈承担， this套路真绝了 To put it simply, central banks of various countries are doing their own thing, and our assets are the worst off Ueda and Otoko also have no choice, with such fierce inflation, not raising interest rates is really unsustainable In 2026, they will have to continue raising, and then another wave of cuts The analogy of liquidity drainage is too heartbreaking, it feels like the crypto圈 is always the last scapegoat The Federal Reserve drags its feet, Japan takes the lead, no one can expect to be immune

View OriginalReply0

blocksnark

· 01-05 10:51

Pump and dump really clever, Japan's self-rescue, we are paying the price --- Another round of "normalization," politely called self-rescue, but actually just cutting the leeks --- Continuing to raise interest rates in July 2026? Then the crypto world will have to live with a tail between its legs for the next two years --- Each doing their own thing is one thing, but the key is that liquidity pools are already tight, Japan's move is really ruthless --- Speaking of why all the global central banks are putting on a show, only Japan is serious --- I understand that core inflation at 3% can't be contained, but why do our crypto assets have to take the blame? --- Short-term volatility can't be avoided... this time it might fall even harder --- Prosperity for all, loss for all, but it seems only the crypto world is suffering --- The yen falling to a 35-year low is indeed frightening, but it's not our fault --- Liquidity is tightening, and this will be the biggest enemy next year

View OriginalReply0

AirdropJunkie

· 01-05 10:39

It's time to extract more profits again, Japan is really skilled with this scalpel move. We suffer from the RMB depreciation, but when the Yen depreciates, they actually raise interest rates. It's hilarious. The liquidity pool is just this big, central banks take turns exploiting it, and the retail investors end up paying the bill. Do we need to keep increasing rates in 2026? Then I better stock up on food. The Federal Reserve is still sleepwalking, Japan has already started harvesting, the European Central Bank is just watching the show. How do we play it? I thought we could catch a break this year, but here comes another round. Japan's self-rescue is fine, but don't expect us to clean up after you. This is what you call the global financial internal competition, with each country's central bank doing its own thing. The funds that can't keep up are always retail investors.

View OriginalReply0

OfflineValidator

· 01-05 10:34

Ueda Kazuo is backed into a corner, Japan's economy really can't hold up anymore --- Again, the central bank is causing trouble. When liquidity tightens, the crypto world gets hit. Japan is really ruthless this time --- Will they continue to raise interest rates in 2026? Our cycle might be dragged out for a long time --- Each country doing its own thing is troublesome. The Fed is dithering, while Japan goes straight to the hard approach --- Basically, Japan is saving itself; we are forced to foot the bill, there's nothing we can do --- With rice and energy prices soaring like this, the Bank of Japan not acting is indeed problematic. I understand but it still hurts --- The global liquidity pool was already short of water, and Japan's move makes it even more painful --- From 0.75% to 1-2.5%, there's still a lot of room, and it might explode later --- By 2026, Japan's interest rates will continue to rise, and the crypto world might have to go into hibernation for the next two years --- The yen depreciating to a 35-year low is just incredible. Japan's economy is really in a terrible state

View OriginalReply0

SchrodingerWallet

· 01-05 10:24

Here comes the pump again, this time it's the Bank of Japan Honestly, it's still Japan's own mess. Why should the crypto community foot the bill? Will they keep increasing in 2026? Then we might not survive until the bull market The Federal Reserve is still dithering, while Japan has already taken action. Central banks are playing their own games, truly remarkable Liquidity is limited. If Japan pulls from it, we have to follow and drop. It's a classic case of humans wielding the knife and fish being cut.

View OriginalReply0