The Bank of Japan Governor Kazuo Ueda made a hawkish statement, which directly smashed the Asian market data to pieces.

Bitcoin leads the decline, and the entire crypto market has instantly entered a state of panic. The market is now filled with one question: Is Japan really going to tighten its monetary policy?

Forecasting platform data shows that the probability of Japan raising interest rates has exceeded the likelihood of maintaining the status quo. Funds are fleeing, and sentiment is collapsing. Not just cryptocurrencies, the Nikkei 225 index and the Korea Composite Index are all plummeting, with the entire Asian market in despair.

This matter must start with Japan's zero interest rate policy. For a long time, Japan has been like the thickest pipe in Asia's pool of funds—interest rates absurdly low, borrowing costs almost zero. Arbitrage capital has long been accustomed to low-cost financing from here, flipping it to other markets to earn interest differentials.

The wind direction has changed abruptly. Once the interest rate hike is implemented, the cost of borrowing will skyrocket, and those high-leverage arbitrage positions will have to be forcibly liquidated. Panic selling? That's inevitable.

The market reaction is so intense because, to put it simply, everyone is betting on the Central Bank of Japan's hidden cards. If you bet right, you can catch your breath; if you bet wrong, you have to endure even more intense shockwaves. At this critical moment, no one dares to easily bottom fish.

After all, Japan's move will impact more than just a few indices. The global liquidity landscape may be rewritten as a result.