BiyaPay Analyst: Japan's interest rates hit a 30-year high, the forex market moves first, and stock and cryptocurrency volatility increases

Deep潮 TechFlow News, on December 19th, the Bank of Japan raised interest rates by 25 basis points as scheduled to 0.75%, reaching the highest level in about 30 years; at the same time, Japan’s tax reform draft mentioned that starting from 2027, the income tax rate across all income brackets may be increased by 1 percentage point. The market initially reacted with “rising yen funding costs + fluctuations in risk appetite.” For digital currencies, the rate hike increases yen financing costs, and if carry traders reduce leverage and cut positions in highly volatile assets, cryptocurrencies are more likely to experience sharp rises and falls, with amplified volatility. BiyaPay analysts believe that attention should be paid to key levels of USD/JPY and their correlation with US stock market risk sentiment, with short-term focus on controlling leverage and positions; BiyaPay supports spot/contract trading of digital currencies as well as multi-asset trading including US stocks and Hong Kong stocks, making it easier for users to dynamically adjust allocations based on risk preferences.