Recently, the global financial world has turned into a real-life “tug-of-war” scene—

Just as the US was clamoring for interest rate cuts, Bank of Japan Governor Kazuo Ueda suddenly said, “We might raise rates.”
Federal Reserve: ??? Bro, what are you doing?

Here’s the crux: Japan holds $1.2 trillion of US Treasury bonds. If you’re the creditor and suddenly decide to tighten monetary policy, would the US dare to ignore you?

Kazuo Ueda’s statement hit hard—
Japanese government bond yields immediately soared to their highest since 2008, US Treasury yields were dragged up as well, and the Fed’s rate-cutting plans were instantly thrown into uncertainty.

What Wall Street fears most right now is Japanese capital flowing back home. After all, that’s like someone tightening the faucet on dollar liquidity.

Japan merely floated the idea of raising rates, and global markets started shaking. Risk assets like ETH were hit first—as liquidity tightens, everyone gets nervous.