Recently, there is an interesting phenomenon worth following — the investors in Japan who control trillions in household assets, their arbitrage strategies may face a major shift.

In recent years, they have achieved good returns by borrowing low-interest yen to buy US Treasuries and US stocks. However, as Japan begins to raise interest rates and the dollar weakens relatively, the advantages of this strategy are gradually fading. Once they need to repay loans, they may have to sell US stocks and US Treasuries to raise funds. The industry estimates that this volume could reach trillions, and the impact should not be underestimated.

What about the cryptocurrency market? If such a large flow of funds occurs in the traditional financial market, volatility will definitely intensify. During the restructuring of market structures, some funds will seek assets with low correlation to stocks and bonds to diversify risks. This is precisely the advantage of crypto assets— the independent attributes of Bitcoin, Ethereum, and other varieties may be reassessed by the market once again.

In addition to mainstream coins, some emerging projects on the Ethereum chain may also welcome follow opportunities. When the market structure changes, it is often also when the allocation of funds changes most significantly.