【Bank of Japan Turns the Page, Zero Interest Rate Drama Concludes】

Ueda Kazuo said he would raise interest rates, but no one took it seriously—until he made a Christmas announcement confirming: rates will continue to rise next year. The 37-year legend of zero interest rates is finally coming to an end.

Last week, it was still "possible, let's wait and see," but this week, the stance has shifted. The market has finally realized: Japan, known as the world's cheapest source of funding, is changing the rules.

What’s going on? Prices are rising, wages are catching up, and real interest rates are plunging. In one sentence: the free arbitrage Japanese yen withdrawal machine is shutting down from today. Traders relying on yen carry trades need to quickly adjust their models.

The most striking contrast is this—Japan is confirming rate hikes while still injecting 122 trillion yen of liquidity. At first glance, it seems contradictory, but in reality, it signals a complete shift.

Global capital is re-seating itself. The Japanese assets, which have been labeled "the cheapest in the world" for thirty years, are now being stripped of that label. No one is asking "Has the yen bottomed out?" Instead, everyone is asking "When will the next rate hike come?"

For the crypto market, this is a signal: arbitrage opportunities are narrowing, and volatility is increasing. When the 30-year zero interest rate regime decides to draw the sword, no one knows how fast it will strike. This is not the end; rather, it marks the true beginning of a more complex market cycle.

Volatility has become the new normal. Be prepared.