Japan's inflation surged by 100 basis points overnight, reaching a modern historical high, with government bond yields shooting up to 2.1%. The Bank of Japan has taken a "big move" by selling $500 billion worth of U.S. stocks to stabilize the economy; this is not just firefighting, it's like throwing a "Liquidity bomb" into the global market!

As the yield on Japanese bonds rises, global funding costs follow suit; with so many U.S. stocks being sold off, liquidity is instantly drawn away significantly, which undoubtedly poses a dual blow to risk assets. The tightening of U.S. dollar liquidity significantly increases pressure on U.S. stocks; as risk aversion sentiment heats up, funds may temporarily flow into gold and U.S. Treasuries. In our crypto space, such high-volatility assets are also likely to be "drained".

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

However, the market is always full of opportunities; the key is to operate calmly. I am Musen, and I will continue to keep an eye on the on-chain dynamics for everyone, announcing specific entry times and real-time news in the village every day. Let's make money steadily together!