As the global economic focus focuses on the Federal Reserve's upcoming decision to cut interest rates, new waves are brewing in financial markets. Fedwatch's latest forecast reveals that market expectations for the Federal Reserve to implement a sharp interest rate cut next week have increased significantly, and this change has been quickly reflected in the fluctuations in global asset prices. The U.S. stock market has enjoyed a strong rebound, with the S&P 500 and Nasdaq recording their largest weekly gains of the year, while gold prices have continued to soar, setting new historical records.
However, under this wave of financial turmoil, an often overlooked risk point is quietly approaching - the monetary policy meeting of the Bank of Japan to be held on September 20. Looking back at the beginning of August, the Bank of Japan's unexpected interest rate hike caught the global financial market off guard, triggering a "Black Monday". Now, the market is once again on edge, worried that history may repeat itself.
On Wednesday, comments by Bank of Japan board member Junko Nakagawa further heightened market tensions, suggesting that the option of raising interest rates is still under discussion, adding some uncertainty to the upcoming meeting. Given the rising inflationary pressure in Japan and the statements of central bank officials, the market generally expects that Japan still has room to raise interest rates this year, especially before the end of the year.
Why can the adjustment of the monetary policy of the Bank of Japan cause such a wide range of impacts? The reason is that as an important part of the global economy, Japan's long-term ultra-loose monetary policy has a profound impact on the global financial market. The low interest rate environment has prompted international capital to borrow a large amount of yen and seek higher returns around the world, forming a unique arbitrage model. Once the Bank of Japan raises interest rates, this arbitrage logic will be overturned, and funds may quickly flow back, leading to a readjustment of global asset prices.
What is more serious is that Japan's huge government debt will face greater debt repayment pressure in the context of interest rate hikes, which may affect the global bond market. At the same time, the fluctuation of the yen exchange rate will also have a chain reaction on the international trade and investment environment, further exacerbating market turmoil.
For the cryptocurrency market, this external impact cannot be underestimated. As cryptocurrencies become increasingly integrated into the global financial system, their price movements have become closely linked to international financial markets. Especially after the Federal Reserve approved Bitcoin and Ethereum ETFs, the volatility of the crypto market has become more significant. Looking back at history, the last time the Bank of Japan raised interest rates, the price of Bitcoin suffered a heavy blow, with a single-day drop of more than 8%, reaching 15% at its peak.
If you want to delve deeper into the cryptocurrency world, but can’t find a clue, and want to quickly understand the information gap, whether it is a contract or spot
You can 👉Click on the avatar to follow me to learn more
$BTC $ETH $BNB
#新币挖矿HMSTR #新币挖矿CATI #灰度将推出首个美国XRP信托 #FTX赎回Solana #特朗普哈里斯辩论未提及加密货币
