2025-12-28 04:50:11

The Bank of Japan has finally broken its 30-year zero interest rate tradition. What does this mean? The world's cheapest arbitrage funds are withdrawing on a large scale.

Imagine those funds and traders who relied on cheap yen loans for global asset allocation—now they have to weigh the costs. Arbitrage positions worth trillions of yen face pressure to close, and will market liquidity experience a sharp contraction? This is the key.

For the crypto world, is this short-term relief from the falling knife, or the beginning of a new downward trend? It depends on where these funds flow—if arbitrageurs withdraw to offset losses from yen appreciation, #数字资产市场动态 $BTC $ETH these high-risk assets may be the first to come under pressure. But in the long term, rising interest rates are significant for the pricing of financial assets.

The market is still digesting this signal. Watching the liquidity performance in the coming weeks will be crucial.

ETH0,11%

BNB2,31%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

6 Likes

Reward
6
5
Repost
Share

Comment

0/400

MidnightTrader

· 14h ago

Japan has finally taken serious action, this time arbitrageurs are going to cry. Cheap money is gone, how will high-leverage players survive? Looking at the recent performance of BTC and ETH, it feels like we need to be prepared. The real test will come when liquidity dries up. With this round of correction, should small investors buy the dip? I'm personally going to wait and see. The tens of trillions of yen withdrawal is frightening to think about, and the crypto market will definitely not be very stable in the next few weeks. Whether the dust settles or they keep hammering, those who cut losses already have. Now it all depends on how new funds will enter.

View OriginalReply0

GrayscaleArbitrageur

· 14h ago

The yen interest rate moves, and the whole world follows suit, causing a large withdrawal of arbitrage funds. The crypto circle is about to suffer... --- Once again, this pattern: Japan raises interest rates, and global assets tremble. It feels like we’re just living off their cheap money. --- Wait, if liquidity truly contracts, how low can spot prices go... --- With trillions of yen in positions, half of the liquidations would make the crypto world cry. How will this wave unfold? --- Is the shoe dropping? I think it’s just the shoe being lifted, ready to stomp down. --- $BTC $ETH These two are now just watching the yen’s face, I really can’t believe it. --- The question is, where did the arbitrageurs’ blood drain to? Can there be some flow into the crypto market... Dream on. --- Long-term pricing is meaningful, but in the short term, we’re taking hits. So the question is, can we survive until the long term? --- Saying that rising interest rates are meaningful for pricing is too official. We just want to know if we can buy the dip.

View OriginalReply0

BrokenDAO

· 14h ago

Tens of trillions of yen are fleeing, in simple terms, the last straw has broken. The old low-cost arbitrage game rules have been completely changed, now let's see who truly has the strength to hold their positions.

View OriginalReply0

metaverse_hermit

· 15h ago

The yen arbitrage is completely over, it should have happened earlier. Those funds that relied on cheap yen leverage to manipulate the global market now have to cut losses. The crypto circle is looking at a grim situation.

View OriginalReply0

PonziDetector

· 15h ago

Japan has finally decided to raise interest rates, and now arbitrageurs are in trouble. Those who borrowed in yen to leverage global assets now have to consider cutting losses and repaying debts. Can the crypto circle withstand this wave? It's really hard to say.

View OriginalReply0