The Bank of Japan made further adjustments at its monetary policy meeting on December 19 — raising the target interest rate from 0.50% to 0.75%, in line with market expectations. This is the Bank of Japan's ongoing rate hike this year, marking a further move towards tightening monetary policy among major global central banks.

For the crypto market, this signal is highly significant. Rising interest rates mean increased attractiveness of mainstream fiat currencies like the US dollar and Japanese yen, putting risk assets (including cryptocurrencies) under pressure. In terms of capital flows, investors may gradually shift from high-risk assets back to relatively stable traditional financial products. Meanwhile, as the world's third-largest economy, Japan's central bank actions often reflect overall changes in global liquidity trends.

It is important to monitor the policy movements of other major central banks such as the Federal Reserve and the European Central Bank, and to comprehensively assess how the global liquidity environment impacts digital assets.