The Bank of Japan has just sent a signal, and the entire market needs to rethink.

The central bank committee members explicitly stated: even if interest rates rise to 0.75%, the real interest rate will still be negative. More importantly, they are about to start a monthly rate hike cycle—this marks a true watershed in the history of the Bank of Japan.

Why is this so alarming? Let me break it down:

**The world's cheapest money is disappearing.** Japan’s 30-year zero-cost financing paradise is coming to an end. Arbitrage funds that rely on borrowing yen to buy US Treasuries and allocate to crypto assets—possibly in the trillions—must now consider an emergency retreat. This is not a small event; it’s a turning point in liquidity dynamics.

**As capital flows back to Japan, emerging markets will be drained.** The Japanese stock market may see a short-term adjustment, with significant pressure on the Nikkei index. Global financing costs are rising collectively, and the corporate bond market faces re-pricing.

**What risks is the Bank of Japan taking?** They prefer to face economic slowdown pressures rather than hold back on aggressive rate hikes. This suggests that the inflation data they see is probably much more severe than officially announced.

**Pay close attention to three signals:** Can spring wage negotiations break through 5%? Can core CPI stabilize above 3%? When will the central bank officially abandon yield curve control?

A particularly painful data point: Japanese household debt has already reached 256% of GDP. A 1% rate hike means an additional 2.5 trillion yen in interest expenses. This high-stakes gamble is a bet on the fate of the nation.

**What is the bottom line?** When the last negative interest rate country begins to raise rates, it signifies the end of the 15-year era of cheap money globally. This means that any investment portfolio—whether traditional assets or digital assets—must re-evaluate risk premiums. Either position early in rate-sensitive assets or stay vigilant during liquidity withdrawal. From this moment on, the global capital landscape will be redrawn.