The Bank of Japan's move has started to make the global markets think. As soon as the rate hike news came out, concerns about carry trades collapsing and liquidity drying up began to surface. But a closer look at what the governor said shows it's not that alarming—this is not a signal of aggressive tightening, but rather a "stabilization of expectations."

The governor repeatedly emphasized a key point: "This is not a shift to tightening, just normalization." Why be so explicit? Because Japan, as one of the world's largest capital exporters, its monetary policy shift directly influences global capital flows. If the market misinterprets it as "aggressive tightening," it could lead to concentrated unwinding of carry trades and chaotic capital movements. Such panic-driven volatility could cause a sell-off. The last time Japan raised rates was in July last year, which caused a flash crash in the US stock market. Now, this "non-tightening" stance aims to prevent a repeat of that situation.

In terms of policy magnitude, the 25 basis points increase is not large, and the pace of rate hikes is clearly not aggressive. Essentially, it's about finding a balance between "extreme easing" and "over-tightening." For the global markets, this isn't about a significant withdrawal of liquidity but rather Japan's gradual guidance of the market to adapt to a normalized monetary environment. In the long run, this approach is more stable and benefits global financial stability. For the crypto world, understanding this means there's no need to overreact to short-term fluctuations in BTC and ETH.