The Bank of Japan's decision to raise interest rates this time is more significant than expected. When this third-largest global economy officially ends its 30-year zero-interest-rate policy, the market did not panic—instead, it experienced a collective rebound. What underlying logic is behind this?

**Why does rising interest rates turn out to be a positive signal?**

First, it’s important to understand that Japan’s new 0.75% interest rate appears to be an increase, but in the context of over 3% inflation, the real interest rate remains negative. This means that borrowing in yen still costs very little, and the global liquidity faucet has not truly closed. More importantly, what markets fear most is not the level of interest rates, but uncertainty. Now that the dust has settled, it actually removes the suspense.

**The true implication for the economy**

A 30-year deflation cycle may be coming to an end. As wages and prices in Japan begin to enter a healthy cycle, it signals a turning point in the overall economic structure. Banking and consumer sectors in the Japanese stock market will directly benefit, and risk appetite will rebound accordingly.

**The chain reaction in global capital flows**

The yen has modestly strengthened, but carry trades will not immediately unwind. The US dollar index has started to come under pressure—historical patterns tell us that a weaker dollar often corresponds with a strong cycle for risk assets. Cryptocurrencies like Bitcoin are benefiting from this macro restructuring; capital is not retreating but seeking new allocation exits.

Short-term volatility may still occur, but the shift in trend often begins at such historical nodes. Against the broader backdrop of a weakening dollar, the long-term support logic for cryptocurrencies is strengthening.