🚨 BREAKING NEWS 🚨
🇯🇵 Bank of Japan hikes interest rates to 0.75% — highest level in 30 years 🤯
Now let me break down why this matters for global markets — and crypto 👇
For decades, Japan has been one of the largest sources of cheap global liquidity.
Investors borrowed Japanese yen at near-zero interest rates and deployed that money into risk assets like stocks, bonds, gold, and crypto.
This strategy worked because borrowing was cheap and returns elsewhere were higher.
⚠️ That era is changing.
With Japan hiking interest rates, borrowing yen is no longer cheap.
This leads to: • Fewer yen-carry trades
• Capital flowing back into Japan
• Global liquidity tightening
And when liquidity dries up, risk assets struggle.
That’s why this macro environment is generally bearish.
🧠 What does this mean for crypto?
Crypto is highly liquidity-dependent.
When global liquidity reduces: • Demand weakens
• Volatility increases
• Downside risk rises
Because of this, the crypto market
