The Bank of Japan's last cheap funding window is closing.

After the easing signals are released, global financing costs will face a systemic increase. This is not an immediate shock, but a gradual transmission through the invisible channel of capital flows to every corner of the market.

Let's first look at Japanese investors. Insurance companies and pension funds that allocate long-term holdings in US and European bonds rely on interest rate differentials and yield spreads for profit. Once domestic interest rates rise, this strategy becomes ineffective—why bother moving assets overseas when local yields are already attractive? The result is some capital withdrawal, pushing up long-term interest rates in the US and Europe. Meanwhile, traders engaging in global arbitrage using yen face sharply increased costs and are forced to close positions and repatriate funds. Imagine a sudden reverse surge of large liquidity, how volatile would risk assets become?

But this process is gradual and won't change overnight. What to truly watch out for is the internal contradiction within the Bank of Japan—tightening monetary policy on one side, while maintaining loose fiscal policy on the other. This policy mismatch could weaken the yen exchange rate and even trigger official interventions.

For crypto market participants, the current strategy is clear: actively reduce leverage exposure, closely monitor key US-Japan data (unemployment rate, CPI, interest rate decisions), and keep the rhythm in check. Policy volatility often presents windows for building and adjusting positions.