Bank of Japan Governor Ueda Kazuo recently sent an important signal — if economic and inflation data meet expectations, the central bank will continue to raise interest rates. This statement carries significant weight because Japan has played the role of a global ultra-loose monetary policy for many years.

When this long-term "source of liquidity" begins to shift, how large will the chain reaction be? Imagine:

Once the yen turns to an appreciation trend, funds accumulated from years of arbitrage trading may flow back on a large scale, directly impacting markets that rely on low-cost funding. Asian equity and bond markets will be the first to feel the volatility. As for the crypto market, which has always been sensitive to liquidity changes, a new round of price fluctuations is almost inevitable.

Historically, even minor adjustments in the Bank of Japan's policies have caused ripples in global financial markets. This time is different — it’s an official signal of a shift, not a tentative adjustment.

Several questions now stand before us: At what pace will Japan raise interest rates? Could this potential risk factor suddenly evolve into a market black swan? After years of liquidity dividends, is this really the beginning of their decline?

At this historic turning point, is your investment portfolio ready? Share your thoughts in the comments.