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【 Japan's Takashi Government Supports Bank of Japan Rate Hike 】 【 Perhaps $BTC will still experience a liquidity tightening before the bull market starts 】 The Japanese government has always kept a distance from monetary policy The common saying is "let the central bank do what the central bank should do" Now the government directly supports rate hikes, indicating that suppressing yen depreciation and handling yen arbitrage trades is no longer solely the Bank of Japan's task 【 Both the US and Japan believe yen arbitrage trading is more speculative activity 】 Japan's Finance Minister said both the US and Japan believe that over the years, the impact of yen arbitrage trading on exchange rates comes more from speculative activity rather than actual demand Japan also clearly stated it will intervene in the foreign exchange market again if necessary This approach is very clear: if yen weakness is mainly driven by crowded arbitrage positions, Japan does not have to wait for trade and capital flows to slowly change Rate hikes can increase the cost of borrowing yen, and forex intervention can cause the yen to suddenly appreciate, directly undermining the profitability of "borrowing yen to buy overseas assets" trades 【 The US stance is also becoming increasingly clear 】 Since last October, Bassett has been urging Japan to proceed with steady, orderly rate hikes Rate hikes narrow interest rate differentials, and intervention increases exchange rate volatility 【 The impact of this on global liquidity and BTC 】 The end of yen arbitrage directly impacts BTC by withdrawing liquidity in the short term Perhaps $BTC will still experience a liquidity tightening before the bull market starts