# Bank of Japan Pauses Rate Hikes Amid US-Iran Tensions

The Bank of Japan chose to pause rate hikes against the backdrop of US-Iran conflict. On one side, JGB yields are at elevated levels; on the other, the yen has fallen to historical lows. This combination has left policy "stuck" by the macroeconomic environment～

By normal logic, a weaker exchange rate should be tightening, but the reality is that energy shocks + economic pressure have left the central bank reluctant to act rashly. This state of "wanting to tighten but unable to," is essentially when liquidity begins to become unstable.

From a market transmission perspective, this is unfavorable.

High oil prices push up inflation, making rate cuts difficult; constrained liquidity naturally reduces risk appetite. High-beta assets like Bitcoin are therefore more easily suppressed in the short term, rather than chased.

From a trend perspective, this looks more like the latter stages of a trend——

Not an immediate collapse, but no longer comfortable～

So don't rush to find opportunities; first see the environment clearly.

Sometimes, losing less IS winning～