Midnight traders are watching something about to happen: the Bank of Japan will announce a rate hike within a few hours, with a probability of 99.8%. It may seem like a small 0.25% increase, but what does it mean behind the scenes? The world's cheapest borrowing channel is about to close. The most immediate victim? The 24/7 Bitcoin market.

Here is a rarely mentioned but crucial financial tactic — for years, major international capital has been playing a game: borrowing yen from Japan at near-zero cost, converting it into dollars, and then pouring it into high-risk, high-reward assets like US stocks, US bonds, and cryptocurrencies. This operation has been continuously providing liquidity to global markets, especially the crypto space. Tonight, this invisible blood vessel is about to be squeezed tight.

What will happen when borrowing costs suddenly spike and the yen begins to appreciate? The most realistic outcome is that Bitcoin bought with borrowed yen will be sold off to convert back into cash to repay debts. History offers some reference: during the Fed's rate hikes in 2022, Bitcoin was halved in value within a few months. The epicenter of this storm has shifted from New York to Tokyo.

The key lies in this capital chain linking Tokyo to every blockchain worldwide. Japan has long maintained zero or even negative interest rates, becoming a "super low-cost ATM" for global financial institutions. Endless funds flow out from here, seeking higher yields around the world. Bitcoin happens to be a crucial part of these "yen leverage" positions. Once the cost structure reverses, a chain reaction becomes inevitable.