The Bank of Japan's rate hike expectations are like a deep-water bomb, instantly shattering the low-interest-rate arbitrage trading patterns that have formed globally over the years.

While market participants are still assessing the Fed's next move, the real shock has already arrived—the Bank of Japan announced an increase in its benchmark interest rate to 0.75%, a historic high since 1995. This was followed by a $637 million liquidation wave of leveraged positions, causing Bitcoin to fall to $89,000. Behind the liquidation is the forced closure of yen arbitrage trades, also marking the official end of the era of cheap liquidity.

The root of this sell-off is not in the crypto market itself but in a deep adjustment of the global liquidity landscape.

From a technical perspective, Bitcoin has already touched the long-term upward trend line established since 2017. Historically, after drops of over 50% in 2017 and 2021, Bitcoin rebounded strongly along this trend line. But this time is different—it's the first test of this support line under macroeconomic transformation pressures. The subsequent pace of the Bank of Japan's rate hikes will determine whether this is a short-term shakeout or a long-term inflection point.

In times of heightened volatility, stability becomes a scarce commodity.

For this reason, the significance of stablecoins like USDD is highlighted. When central bank policies shake the stability foundation of traditional finance, USDD offers a stable solution through over-collateralization and algorithmic mechanisms, independent of any single country's monetary policy. Not relying on traditional central banks, this is precisely where its competitive advantage lies.