#美联储降息 The Federal Reserve just started cutting interest rates, and the US stock market immediately surged to around 50,000 points, while the crypto market is still spinning at a critical junction. Watching this market, many people think it's settled. Actually, not so; this week could be more thrilling than a roller coaster ride.

Where are the real variables? The Bank of Japan is about to shift towards raising interest rates. Many will wonder, does Japan’s rate hike or cut have anything to do with us? Actually, it’s a big deal.

Over the past twenty years, the Japanese yen has been in a negative interest rate environment. What does that mean? Borrow 100 yen from Japan, and you only have to pay back 99 yen in the end. This kind of treatment is a boon for large global institutions. Their strategy is: borrow yen at ultra-low interest rates from Japan, exchange it for USD to buy US stocks, hoard gold, buy bonds, or even allocate Bitcoin, profit, and then convert back to yen to settle the account. This arbitrage model has made giants like Buffett and Soros immensely rich. Buffett’s famous phrase, "I love Japan," secretly hides this logic.

But last December, Japan suddenly shifted to positive interest rates. This was not a minor adjustment but an earthquake in the global financial system. Now, with further rate hikes on the horizon, what does it mean?

The cheap funds lent out of Japan are starting to cost more. As interest rates rise, these arbitrage capital flows will inevitably accelerate back to Japan. When this force kicks in, a wave of passive sell-offs in stocks, gold, oil, bonds, foreign exchange, and even cryptocurrencies like Bitcoin will occur. Short-term turbulence will definitely increase, and a collective correction might even happen.

The upcoming scenario is: the US cuts rates to flood the market, while Japan hikes to tighten. The clash of these two forces will almost certainly cause market chaos and volatility. A major storm is truly coming. Be mentally prepared; this week’s market could be more bizarre than expected.