I found the recent interest rate hike decision by the Bank of Japan quite interesting. The policy interest rate was raised by 25 basis points to 0.75%, reaching a 30-year high, but the market's reaction was completely contrary to conventional logic.

Many people have been waiting for this news, and the market has long been psychologically prepared. A 25 basis point move is completely within the expected range, with no surprises. The key is that when this "shoe" finally dropped, it became a moment of relief for the market. Just look at the data — the Nikkei 225 index rose directly by 1.28% after the decision, and this is the best proof.

The performance of Bitcoin here is more interesting. According to historical patterns, every time the Bank of Japan raises interest rates, Bitcoin experiences a drop of 20%-30%. Therefore, before the decision, the fear and greed index in the crypto market had fallen to "extreme fear". What was the result? After the announcement, Bitcoin actually rebounded. Many people in the circle realized that the real rules of the game may have changed.

The most outrageous thing is the performance of the yen. According to common logic, a rate hike by the Central Bank should boost the currency's value, right? But after the rate hike, the yen actually weakened against the dollar, falling from 155.92 all the way down to the 156-157 range. This completely breaks the traditional economic logic.

The Governor of the Bank of Japan, Kazuo Ueda, candidly stated at a press conference that even after the interest rate hike, Japan's real interest rate remains "significantly negative," and the financial environment will continue to remain accommodative to support economic activity. In other words, the extent of this interest rate hike is actually quite limited, and the true tone of the accommodative policy has not changed. With this signal being released, the market naturally has little to fear.