⚠️ WARNING: IF JAPAN HIKES TO 1.00%, GLOBAL LIQUIDITY COULD SNAP
According to Bank of America, a potential rate hike by the Bank of Japan to 1.00% could have serious consequences for global liquidity.
Here’s why this matters 👇
🇯🇵 Japan has been the world’s cheapest money source for decades.
With ultra-low rates, investors borrowed yen and deployed capital into global assets — from US stocks to crypto.
If rates rise to 1%:
🔹 The Yen carry trade unwinds
🔹 Borrowing becomes expensive
🔹 Global leverage decreases
🔹 Risk assets feel pressure
Liquidity is the fuel of markets.
When liquidity tightens → volatility rises.
📉 Stocks could face downside pressure
📉 Emerging markets may struggle
📉 Crypto could see sharp swings
This isn’t just a Japan story — it’s a global macro shift.
Markets have been addicted to cheap money.
If that changes, positioning will need to adjust fast.
💡 Smart traders watch liquidity.
Because liquidity drives trends.
