The sudden depreciation of the Japanese Yen and significant fluctuations in the bond market— all trace back to the Bank of Japan's most aggressive rate hike in 30 years.

Recently, the Bank of Japan announced an increase in the policy interest rate from 0.5% to 0.75%, reaching a new high since 1995. The original plan was straightforward—raise interest rates to stabilize the domestic currency. But the market's reaction was completely opposite: the Yen not only failed to appreciate but depreciated sharply, briefly breaking below the 157 level.

Even more dramatically, this rate hike triggered a surge in Japan's long-term government bond yields. The 10-year Japanese government bond yield broke through 2%, reaching its highest level since August 1999. What does this indicate? The underlying logic of traditional financial markets is beginning to shake.

Bank of Japan Governor Ueda Haruhiko candidly stated at the press conference—if they do not act decisively now, future adjustments may be "extremely large," which would be a real shock. Behind this decision is the pressure from Japan's 44 consecutive months of inflation exceeding the 2% target, as well as the passive choice amid the era of diverging global monetary policies.

Seemingly textbook-like policy operations have produced completely opposite market effects. Just as the gears of the global financial order are grinding intensely, a new window of opportunity is opening— the narrative of decentralized finance (DeFi) and stablecoins has gained more attention amid this wave of uncertainty. The failure of traditional central bank policies has instead become a new engine for on-chain asset allocation.