The Bank of Japan's policy shift has ignited a fuse in the global markets. The end of the era of negative interest rates on the yen means that the cheapest financing channel has officially been cut off. Over the years, hedge funds and traders have leveraged the low cost of the yen to dominate global asset markets—from stocks to commodity futures, and even to crypto markets—where yen arbitrage positions are everywhere.

Yesterday's policy signals triggered an immediate market response. Japanese government bond yields surged, and large-scale unwinding of arbitrage trades began. Can you imagine? Those yen carry trades that used to earn easy profits are now forced into reverse. Liquidity is flowing out rapidly from all corners like a tide.

High-volatility assets like BTC and ETH are the first to be affected. As borrowing costs rise and financing becomes more expensive, the gains built on leverage are starting to face pressure. How much selling pressure will there be? No one can say for sure. But one thing is certain: positions built on cheap liquidity are undergoing revaluation.

A more immediate concern is that the global financial environment is shifting from easing to tightening. Yen appreciation, rising interest rates, shrinking liquidity—this combination is just beginning to impact the crypto market. Can your holdings withstand this wave of volatility?