Ueda Kazuo's latest statement clearly signals that the era of negative interest rates in Japan has officially come to an end, and rate hikes are now a certainty. This is not just a matter of the yen exchange rate; it reflects deeper changes in the global liquidity landscape.

Thirty years of cheap yen has kept arbitrage trading booming. Borrowing low-interest yen to invest in higher-risk assets was once a "cash machine" for many investors. Now, the game is changing. When the Bank of Japan truly tightens monetary policy, the first to be impacted will be these leveraged positions. High-volatility assets like Bitcoin and Ethereum face short-term selling pressure, and the pain of liquidity tightening will become tangible.

But the story is far from all gloom. Historical experience shows that shifts in interest rate environments often lead to asset re-pricing. In an era of diverging global central bank policies, cryptocurrencies as risk assets are indeed vulnerable to declines, but at the same time, their appeal as alternative allocations is rising. Institutional investors holding USD and EUR may be re-evaluating the roles of digital assets like BTC, FLOW, and FIL in their portfolios.

The key is the pace of rate hikes. Every central bank statement and economic data release can rewrite market sentiment. Short-term volatility is inevitable, but this also presents opportunities for agile traders. Those who can quickly adapt to the new liquidity landscape often find opportunities amid the changes. Instead of panic, it’s better to observe calmly and position precisely.