The Bank of Japan finally turned around, raising interest rates by 0.75%.

The last major country in the world clinging to low interest rates has truly stood up this time.
And what about the 9 trillion yen carry trade position? To be honest, this number is somewhat inflated. According to China Merchants Bank's statistics, it might include Japanese external debt, long-term deposits, and even loose change in convenience stores. The real pressure to close positions isn't as outrageous as it seems.
But the problem is— the yen is no longer cheap. Borrowing in yen before was like drinking free water, making carry trades very enjoyable. Now? You have to pay real money. Traders accustomed to low-cost financing are starting to break out in cold sweat collectively.
Will global liquidity dry up instantly? Not likely. But shifting from "flooding" to "moderation and restraint" is certain. The money is still there, just more expensive—like switching from free tap water to paid bottled water. It’s still usable, but at a higher cost.
The result is clear: the yen has appreciated, the Bank of Japan is relieved, but Wall Street’s highly leveraged players will have to tighten their belts. The liquidity environment in the crypto market will also need to adjust accordingly. 😂