Many people have been asking recently, why is Bitcoin's current market so dull? It can't seem to rise, and it has a bottom when it falls. Actually, this is a very good question.

**The core issue is not on the chain, nor is it related to the whales, but lies in the global interest rate environment—especially Japan.**

Let me clarify from the beginning. Over the past few years, the stance of global central banks has become very polarized. The US and Europe have been tightening step by step during their rate hike cycles; Japan, on the other hand, has been doing the opposite. Interest rates are almost zero, and financing costs are virtually negligible. What does this mean? It means the world's cheapest money is continuously flowing out of Japan.

Where are these cheap yen funds going? Into US stocks, global high-risk assets, and of course, Bitcoin. You can think of Japan as an invisible major provider of risk assets—so long as interest rates are near zero, these funds keep flowing into various high-yield investments.

But now, the tide has turned. The Bank of Japan has recently sent a clear signal: inflation can no longer be contained, and interest rates must be raised. Moreover, this won't be a one-time adjustment but a series of policy changes. This shift will have a profound impact on global asset allocation.

What is the most direct consequence when the yen's interest rates rise? The arbitrage space for cheap yen is squeezed, and funds that borrow yen to allocate into global high-risk assets begin to shrink. Liquidity flows back from fringe markets, and Bitcoin, as a high-beta risk asset, will naturally feel this pressure.

This is not a problem with Bitcoin itself, but a rebalancing of the macro liquidity landscape. Understanding this will give you a clearer perspective on the current market fluctuations.