Japan's central bank governor Haruhiko Kuroda's recent statements have sparked market attention: the era of negative interest rates is coming to an end, and Japan will continue to push for rate hikes next year. This not only marks a major turning point in Japan's monetary policy but may also trigger a reshuffling of global capital flows.

For the past thirty years, Japan has been the world's most affordable source of funds. Bank loan costs have been extremely low, and many hedge funds and investment institutions have been accustomed to financing in yen and then investing in high-yield assets—this is the famous yen carry trade. However, as expectations for rate hikes become clearer, this golden age of low-cost financing is officially coming to an end.

What will happen next? First, global borrowing costs will rise, and liquidity will begin to tighten. Risk assets that have long relied on low-cost funds will face pressure. Second, the yen's appreciation is expected to strengthen, potentially leading to a wave of margin calls, which could cause increased short-term market volatility.

In the long run, the traditional fiat currency system faces increasing uncertainty. Frequent policy changes and the risks brought by interest rate fluctuations have actually strengthened demand for inflation-hedging assets like Bitcoin. Both institutions and individuals are re-evaluating their asset allocations. Those who previously profited from arbitrage may likely flow into the crypto market seeking new returns.

This is a critical juncture—a moment where risk and opportunity coexist.