All Eyes on Japan: A Massive Liquidity Shift Could Shake Global Markets 🚨
As 2025 wraps up, the spotlight is firmly on Japan – not just for recent policy moves, but for what's brewing in 2026.
The big story: The Bank of Japan holds a massive ~$530-700 billion ETF portfolio (market value estimates vary). Starting as early as January 2026, the BOJ plans a slow unwind, selling gradually to avoid chaos. This ends decades of ultra-loose liquidity where cheap yen fueled global carry trades and risk assets.
Why it matters for crypto & markets:
Japan has been a key source of global easy money – yen borrow-and-invest strategies powered stocks, bonds, and yes,
$BTC /
$ETH rallies.
Tightening (higher rates + balance sheet shrink) could reprice risk: stronger yen, less liquidity chasing high-yield assets.
Flip side: If the unwind stays super gradual (as planned), pressure might build slowly, giving markets time to adjust – or even a rebound if other central banks ease.
Recent BOJ rate hike to 0.75% (highest in 30 years) already signaled the shift. Carry trades are unwinding, yen strengthening could continue.
Global funds are watching closely – this isn't just Japan policy; it's a potential pivot in worldwide liquidity.
Will it trigger volatility in crypto, stocks, bonds? Or delay the pain?
What’s your take – bull or bear for risk assets in 2026? 👇
#Bitcoin #Ethereum #BOJ #Liquidity #JapanEconomy