Behind the Market Crash, the Real Crisis Has Yet to Arrive

The recent sharp drop in Bitcoin has scared many people. The Bank of Japan's interest rate hike operation is like a deep-water bomb, instantly detonating the global markets. But what you really need to worry about is not the current decline — it's the upcoming liquidity storm.

Over the past ten years, there has been a covert game: borrowing zero-cost Japanese yen, converting it into US dollars, and then aggressively betting on US stocks, US bonds, and Bitcoin. Earning stable currency spreads, almost like printing money. The last Bitcoin bull market? It was fueled entirely by cheap Japanese yen.

Where is the problem? Japan suddenly starts raising interest rates, while the US is about to cut rates. Under this double pressure, this ten-year "global money-making engine" has been shut down. The cost of borrowing yen is soaring, while the returns on dollar assets are shrinking. The good days are over.

Even more severe, this is not just a simple correction. Institutional funds need time to rebalance, but the direction is already clear — arbitrage capital is retreating, and global liquidity is drying up. Every time Japan raises rates again, a wave of forced liquidations will follow. The selling pressure on Bitcoin may just be beginning.

2026? The market circles are saying this could become the "Year of Explosive Defaults." This is a liquidity reversal that will last for years, not something that can be resolved in a few months.

In such an environment, you need some truly stable assets to hedge risks.