Market Observation: Bank of Japan Governor Kazuo Ueda's latest remarks on January 5th have attracted attention. He stated that if economic and price trends meet expectations, the central bank will continue to raise interest rates—this is a further signal following the December 2022 increase to 0.75% (the highest in thirty years). Industry insiders expect 1-2 more rate hikes by 2026, with the terminal rate possibly reaching 1%.

What does this mean for crypto assets? The yen appreciation cycle is beginning, and arbitrage funds may flow in the opposite direction. In the short term, narrowing interest rate differentials between Japan and the US could boost risk appetite, benefiting high-volatility assets like Bitcoin and Ethereum. Currently, BTC hovers above $91,000, and ETH approaches $3,150, indicating potential upward momentum.
But be cautious—once the global monetary policy tightening expectation is formed, reverse arbitrage and risk aversion could reverse the situation instantly. Do not blindly chase short-term rebounds; closely monitor the Federal Reserve's subsequent actions and the yen exchange rate trends. These two factors are key to determining the rhythm of the crypto market.