The Bank of Japan is increasingly prioritizing its own economic stability over close coordination with the Federal Reserve under Powell's leadership. This policy divergence reflects deeper structural differences: while the Fed remains hawkish on interest rates to combat inflation, the BOJ is taking a more cautious approach to support Japan's fragile recovery. For crypto markets, this split matters significantly. When major central banks move in different directions, currency volatility increases and capital flows become unpredictable. Some investors are treating BOJ's independent stance as a signal to diversify away from pure USD exposure. The divergence also affects global liquidity conditions—if BOJ and Fed coordination weakens, it could reshape how digital assets are priced against major fiat currencies. Traders watching this situation are adjusting their hedging strategies accordingly, especially those with exposure to JPY-denominated portfolios.