At this stage, we see two scenarios in the future: explosive growth? Plunge?
One is that the Bank of Japan slowly raises interest rates by 0.01 every time
Institutions and retail investors react when the Fed cuts interest rates
And the economy has not entered a recession and has once again pushed up stock prices and currency prices.
(But bubbles will burst one day)
The other is that the Bank of Japan raises interest rates but the rate rises very quickly.
(Institutions borrow large amounts of yen at cheap interest rates through yen lending)
Go buy assets from Japan or other countries
(Retail investor) Mrs. Watanabe borrowed yen
Arbitrage trade between Japanese yen and Australian dollar
And we put a lot of leverage in the Japanese yen position.
Because they know that the token economics of the yen are an endless cycle
The yen must move quickly to protect the tourism industry
But it also makes exports also face serious problems
After raising interest rates, institutions lowered their leverage
Large amounts of selling in a short period of time affect the market
And generate panic, retail investors sell in large quantities
Stock price plummets
At the same time, it affects the stock markets of various countries and almost all economies.
We must face the consequences for institutional greed
When web3 has no more cash flow and falls into market recession,
fade away slowly
Then we enter the recession cycle and plummet
Interest rates return to 0%...
In a few years, institutional capitalists will have enough rest.
