The Bank of Japan's largest interest rate hike policy in 30 years has instead increased the pressure for the yen to depreciate. The yen has fallen below the 157 mark, hiding a tricky logical paradox: tightening policies should strengthen the currency, but due to the widening interest rate differential between the U.S. and Japan, it has triggered large-scale carry trades.

The reality is harsh. The United States still maintains a high interest rate environment. Although it has entered a rate-cutting cycle, the interest rate level is still far higher than that of Japan. This means that capital continues to flow from Japan to the United States, with trap traders borrowing yen to buy dollar assets to earn interest rate differentials — thus putting continuous pressure on the yen. At the same time, the Japanese economy is trapped in a stagnation-inflation dilemma, and there is a huge gap between the Central Bank's seemingly tough rate hike measures and market expectations.

What is even more concerning is how this level of exchange rate fluctuation will impact global liquidity. When carry trades are unwound, cross-market capital flows often trigger a chain reaction. As a high-volatility asset class, crypto assets have historically been the most sensitive to changes in liquidity. The price trends of coins such as UNI, KSM, and ACT may face additional pressure in the exchange rate storm.

If the yen continues to depreciate to 160 or even lower, the carry trade model in Asia and globally will face a re-adjustment. For investors focused on the crypto market, this macro change is not a small ripple - it is a potential systemic risk signal. The fate of the yen, to some extent, is a barometer for the next wave of market liquidity.