Japan's inflation suddenly surged by 100 basis points overnight, setting a record in modern history, with government bond yields directly breaking through the 2.1% mark. To stabilize the situation, the Bank of Japan sold $500 billion of US stocks in one go—this is not just firefighting, but rather throwing a liquidity bomb into the global financial market.

The chain reaction came immediately. Japanese bond yields surged, and global funding costs rose accordingly; a large-scale sell-off of U.S. stocks occurred simultaneously, and market liquidity was significantly drained. For risk assets, this is a standard double blow—U.S. dollar liquidity tightened suddenly, putting more pressure on U.S. stocks; risk aversion sentiment rapidly increased, and funds may surge into safe-haven assets like gold and U.S. Treasuries in the short term. Cryptocurrencies, being high-volatility assets, are also likely to face a correlated drop in the environment of liquidity withdrawal.

Why is the Bank of Japan in such a hurry? It indicates that the internal economic pressure is far more severe than what is seen on the surface. Inflation has already spiraled out of control, and they can only rely on dumping overseas assets to recover cash. Once other central banks start to follow suit and initiate self-rescue massive selling, the global market in the first half of 2026 may really enter a chaotic situation of "who can run faster."

But opportunities always exist within volatility; the key is how to operate calmly. The market will provide profit space for those investors who are well-prepared, as long as they continuously pay attention to on-chain data and policy changes, and anticipate market trends in advance.