🔥 Japan just dropped a holiday shock on global liquidity.
For decades, Japan kept markets afloat with: ❄️ Ultra-low (even negative) interest rates
💴 Cheap yen funding
♾️ Endless carry-trade liquidity
That era is ending—fast.
On Dec 25, BOJ Governor Kazuo Ueda sent an unmistakable message 👇
➡️ Wage growth is broadening
➡️ Core inflation is steadily approaching 2%
➡️ Real rates remain very low
➡️ More rate hikes are coming in 2026
💥 Translation: Japan is no longer the world’s free money machine.
Markets felt it immediately 🧊
💣 Yen strengthened
🏦 Carry trades came under pressure
📉 Global bonds and risk assets started to tighten
This isn’t noise—it’s a regime shift ⚠️
📉 Rising yields squeeze leverage
📉 Valuations face reality checks
📈 Volatility is starting to wake up
🚨 Crypto takeaway:
Carry-trade unwinds usually hit risk assets first and hardest. Short-term pain often comes before the next opportunity—but liquidity is no longer unlimited.
Cycles are turning.
See it early… or pay for it later. 👀🗡️
