The Bank of Japan keeps interest rates unchanged, and the recent market pullback is due to this reason.

Previously, the market widely expected the Bank of Japan to raise interest rates, but based on the statements from the Bank of Japan's officials today, there is a possibility of a rate hike in June.
The Japanese yen is actually a major provider of global dollar liquidity, with many funds borrowing yen at low interest rates and then converting to dollars to invest in higher-yield markets. This is a typical carry trade.
But if Japan raises interest rates, these arbitrage positions will be forced to close, and liquidity will be rapidly drained.
Many people may not realize the importance of Japanese interest rates in their daily lives, thinking that global liquidity mainly depends on the Federal Reserve, but in fact, Japan's ultra-low interest rates are one of the "water taps" for global funds.
Once rates are raised, the tap is turned down, and the global markets will have to tighten accordingly.
On March 19, 2024, the Bank of Japan raised interest rates, causing the U.S. stock and crypto bull markets to come to an abrupt halt.
On July 31, 2024, the Bank of Japan raised rates again, and Bitcoin dropped from 62k to 49k.
On December 2025, the Bank of Japan raised rates once more, and Bitcoin fell from 116k to 80k.
Therefore, closely monitor the Bank of Japan's actions in June.