Recently, Bank of Japan Governor Kazuo Ueda sent a clear signal: Japan's era of zero interest rates has come to an end. The rate hike cycle will continue into next year. What does this mean for the global financial markets?

Let's look at some key points: The spiral rise in wages and prices has been confirmed, and Japan's 2% inflation target is basically stable. This indicates that the central bank has reasons to continue raising interest rates. Currently, Japan's real interest rate remains relatively low, and from this perspective, there is room for further rate hikes. Market expectations of a semi-annual rate increase may now be set in motion.

The chain reaction this triggers is quite obvious: the pressure for yen depreciation will suddenly decrease, and those previous arbitrage trades may need to be rethought. Global capital is also reassessing the value of Japanese assets. Liquidity in the Asia-Pacific region is tightening overall, and market volatility is likely to return quickly.

Looking at the crypto market, a shift in the traditional financial landscape often triggers a style change in digital assets. From the perspective of liquidity turning points, is this a risk or an opportunity? This is a question worth serious consideration. Institutional funds are already adjusting their positions, and retail investors should closely follow policy developments and manage their asset allocations accordingly.

Market changes happen quickly, and policy interpretation requires ongoing attention. Japan's central bank pivot could very well become the trigger for the next wave of market volatility.