The recent statements by Bank of Japan Governor Kazuo Ueda have sparked a new wave of market turbulence. During the Economic and Social Research Institute meeting, he expressed his stance with rare firmness: the 2% inflation target is now within reach, and the timing for rate hikes is maturing. He emphasized that the trend of moderate wage and price increases is consolidating, and the conditions for sustainable inflation are gradually being met. This is not just a routine speech but more like paving the way for subsequent policy tightening.

Currently, Japan's interest rates have reached their highest level since 1995. Nevertheless, Ueda hinted that as long as economic performance meets expectations, further rate hikes remain an inevitable choice. The market is beginning to speculate whether the next rate increase will come as soon as next month. This suspense itself is influencing global capital allocation strategies.

Interestingly, the official stance on the yen exchange rate is particularly cautious. Finance Minister Shunichi Suzuki publicly warned against speculative behavior, implying that intervention mechanisms could be activated if necessary. Japan holds $1.3 trillion in foreign exchange reserves, a substantial bargaining chip, but the market is still watching: under the impact of global capital flows, how long can this line of defense hold?

The real dilemma is even more complex. Prime Minister Fumio Kishida faces severe livelihood pressures—rising living costs have angered the public, and the Liberal Democratic Party's election results are also declining. She is urgently calling on companies to raise wages, attempting to offset inflation through wage growth. The problem is that if the yen depreciates again, import costs will rise accordingly, worsening inflation. At that point, the central bank will face a dilemma: should it prioritize stabilizing the exchange rate or stimulating economic growth?

From the perspective of the crypto market, these changes are crucial. The policy shift by the Bank of Japan implies a potential tightening of the global liquidity environment, and the uncertainty surrounding the yen's movement will also influence the flow of cross-border capital. The performance of major cryptocurrencies like $BTC $ETH $BCH will ultimately be affected by these macro factors.

Whether Japan can truly break through its three-decade-long "zero growth" dilemma depends on this policy shift. All market participants are holding their breath, waiting to see how the next decision will shape the global financial landscape and, consequently, impact the digital asset sector.