The recent market pullback is actually directly related to the Bank of Japan's stance.

Previously, the market widely expected Japan might raise interest rates, but this meeting chose to hold steady.
However, from the governor's speech, there is still a window for a rate hike in June, which has made funds much more cautious.
Many people usually focus only on the Federal Reserve but overlook the impact of Japanese interest rates.
In fact, Japan's long-term low interest rates are an important source of global liquidity.
A large amount of capital borrows low-interest yen, exchanges it for dollars, and invests in higher-yielding asset markets—this is a typical carry trade.
Once Japan actually raises rates, the cost of borrowing yen increases, and these arbitrage funds must return to close their positions,
and global liquidity will be drained, naturally putting pressure on risk assets.
In other words, Japan's ultra-low interest rates are actually a "water tap" for global funds.
Tightening the tap will amplify market volatility.
Looking back at history makes this even more intuitive:
On March 19, 2024, Japan raised interest rates, and the US stock and crypto bull markets quickly cooled down;
On July 31, 2024, rates were raised again, and Bitcoin dropped from 62k to 49k;
In December 2025, another rate hike saw Bitcoin fall from 116k to 80k.
So, the upcoming June move must be closely watched.
What truly determines the market rhythm is often not the surface-level rise and fall, but the loosening and tightening of liquidity.