# BOJRateHikesBackontheTable

BOJ Tightening, Yen Liquidity & Crypto Risk Allocation Is the Yen Carry Trade Unwind Back on the Table?
JPMorgan’s expectation that the Bank of Japan could hike rates twice in 2025, with policy rates potentially reaching ~1.25% by end-2026, may look modest in isolation. But in a global system built on decades of cheap yen funding, this shift carries outsized implications for cross-asset risk allocation including crypto.
This isn’t just about Japan. It’s about global liquidity plumbing.
Why the Yen Matters More Than Its GDP Share
For years, the Japanese yen has functioned as one of the world’

#BOJRateHikesBackontheTable
As of December 30, 2025, the market is reacting to renewed speculation that the Bank of Japan (BOJ) may reconsider its long-standing accommodative monetary policy. This marks a potential shift in the macroeconomic landscape, with implications for FX, equities, and risk sentiment globally.
Current Market Context
The Japanese yen is showing strength against major currencies as traders price in the possibility of future rate adjustments. USD/JPY has pulled back from recent highs, reflecting both speculative positioning and profit-taking. Equity markets in Japan are sl

🇯🇵 BOJ Rate Hikes Back on the Table
Discussions around potential BOJ rate hikes are drawing global attention. Any shift in Japan’s monetary stance could influence currency markets, bond yields, and broader risk sentiment worldwide.
#BOJRateHikesBackOnTheTable #MonetaryPolicy #GlobalMarkets #MacroEconomics #FXMarkets

Japan’s Shocking Interest Rate Shock Historic Change in the Global Financial System and a Warning for Investors
The shock coming from Japan is not just a headline it represents a fundamental shift in the global financial system that has been building for years. For more than three decades Japan stabilized the world through zero interest rates absorbed global uncertainty and provided cheap credit to international markets. This era supported US growth global stock valuations real estate booms and the modern debt based economy. When Japans 20 year government bond yield rose to 275 percent it mark

#BOJRateHikesBackontheTable
JPMorgan’s expectation that the Bank of Japan will hike rates twice in 2025, pushing policy rates toward 1.25% by the end of 2026, marks a significant shift in a market that has been accustomed to decades of near-zero or negative rates. From my perspective, even modest hikes in Japan can have outsized effects on global liquidity and risk allocation because the yen has historically played a central role in carry trades. Investors borrow in low-yielding yen to fund higher-yielding assets elsewhere, including equities, emerging markets, and increasingly, crypto. If th