The Bank of Japan's recent rate hike is not primarily about "tightening," but about "moving towards normalcy." This statement may seem ordinary, but it actually reflects a key turning point as Japan's economy emerges from a long-term deflationary quagmire.

Let's look at the good news first. The ability to raise interest rates is backed by substantial improvements in economic fundamentals. Achieving inflation targets for 44 consecutive months, wage growth reaching a high of 5.25%, and corporate confidence hitting a four-year high—what do these data indicate? Japan has finally broken the "three lows cycle" (low growth, low inflation, low interest rates), something that was unimaginable in the past 20 years.

But challenges are also evident. The Japanese government has just launched an 18.3 trillion yen fiscal stimulus, and now the central bank begins to raise rates, which directly increases the government's debt servicing costs. The conflicting policy directions pose significant risks. Not to mention the complex global situation—US tariffs, supply chain uncertainties—any external shock could disrupt Japan's economic recovery pace.

Nevertheless, this rate hike marks Japan's official departure from an era of extreme monetary easing. The central bank's emphasis on a "gradual and cautious" approach aims to normalize policy while minimizing risks, ensuring a smooth economic transition. This will have tangible impacts on global liquidity and the price fluctuations of assets like BTC, ETH, and others.