Japan's inflation skyrocketed by 100 basis points overnight, hitting a modern historical high, with government bond yields shooting up to 2.1%. The Bank of Japan has pulled out all the stops, selling $500 billion worth of US stocks to stabilize the economy. This is not just firefighting; it's like throwing a "liquidity bomb" into the global market!

As Japanese bond yields rise, global funding costs follow suit; with so many US stocks being sold, liquidity is instantly pulled away, which is undoubtedly a double whammy for risk assets. The tightening of dollar liquidity increases pressure on US stocks; as risk aversion rises, funds may flow into gold and US Treasuries in the short term. In our crypto space, such high-volatility assets will likely also be "sucked out".

Why is Japan in such a hurry? Is the internal economic pressure greater than it appears on the surface? With inflation out of control, it can only sell overseas assets to recover. If other central banks also follow suit with self-rescue selling, the global market might have to enter a “who can run faster” mode in the first half of 2026.

However, the market is never short of opportunities; the key is to operate calmly. I am Musen, and I will continue to monitor on-chain dynamics for everyone, announcing specific entry times and real-time news daily in the village, so we can all make steady profits together! $ETH $XRP $SOL