The recent statements by Bank of Japan Governor Kazuo Ueda have sparked widespread market attention. He explicitly stated that as long as the domestic economy and price trends meet the central bank's expectations, they will continue to raise interest rates. This is not just a casual remark — the market has already interpreted it as a key signal that the Bank of Japan is officially bidding farewell to the ultra-loose monetary policy era and moving toward normalization.

As the last major central bank in the world to maintain negative interest rates, Japan's shift is highly significant. Imagine this scenario: while the Federal Reserve is cutting rates and the European Central Bank is easing policy, Japan raises interest rates against the trend. What could happen? The yen might regain attractiveness. Arbitrage traders who previously borrowed in yen at low interest rates to invest in high-risk assets might suddenly find their costs rising — they could start to withdraw.

This restructuring of the global interest rate differential has already been affecting international capital flows. A strengthening yen means a flow back of arbitrage funds, which previously flowed into high-risk investments, including crypto assets. In the short term, this liquidity contraction could put pressure on assets like Bitcoin. But in the long run, Japanese households and institutional investors are seeking diversified asset allocations, which could open new growth opportunities for alternative assets.

In summary, this move by the Bank of Japan not only changes the financial environment within Japan but is also quietly reshaping the global macro landscape — and the crypto market is naturally part of this reshuffle.