The Governor of the Bank of Japan, Ueda Kazuo, recently made statements that completely shattered a market illusion—some still expect this to be a "one-time rate hike." The reality is: continuing rate hikes next year has become a foregone conclusion.

Just last week, the interest rate was pushed to its highest level since 1995, and this week, the central bank announced its determination to tighten policy to the market. The central bank officials are not "discussing whether to raise rates," but are plainly saying: we are serious this time.

The logic behind this is actually quite clear. First, maintaining inflation at the 2% target has become a hard constraint. The spiral of rising wages pushing up prices, which in turn raises wage expectations, has already formed, and the central bank must break this cycle. Second, as the last major central bank worldwide to maintain ultra-loose policies, every step of Japan’s tightening is changing the flow of global funds—continuously increasing the cost of yen financing, and investors relying on carry trades will face collective liquidation pressures.

For the cryptocurrency market, this is not just about emotional fluctuations. Liquidity is the biggest external variable for the crypto market, and Japan’s ongoing tightening is like continuously tightening the valve on the global liquidity pool. While the Federal Reserve is still wavering and the European Central Bank is still on the sidelines, this tightening force from the East is systematically draining blood from the market.

Every rebound should prompt you to ask: can this rally withstand the "water withdrawal" from the East? When even the last bastion of global easing abandons zero interest rates, the era of "high-cost global capital" is truly irreversible. Is your strategy ready to face this ongoing headwind?