2025-12-25 06:22:31

The global market is experiencing an invisible transfer of capital. The latest statement from the Bank of Japan has sparked market attention: the governor explicitly stated that rate hikes are difficult to stop, and the two-year government bond auction was cold, with yields reaching a 27-year high. This signal is very clear—the thirty-year era of low Japanese interest rates has come to an end, and a large amount of funds financed in yen for global investments are accelerating their withdrawal.

Interestingly, while retail investors are still worried about bond fluctuations, Wall Street is moving much faster. Top institutions like BlackRock have recently increased their holdings of Bitcoin and Ethereum frequently, with daily increases reaching tens of millions of dollars. As of now, the total holdings of mainstream institutions in the crypto space have approached $80 billion—this is no coincidence.

The logic behind this is simple: the Bank of Japan is caught in a dilemma—fighting inflation on one side and facing selling pressure on government bonds on the other, which will create sustained expectations of rate hikes. When liquidity expectations in the old financial system shift, institutions will proactively allocate to new asset classes. As a representative of the new monetary paradigm, the crypto market is attracting increasing large-scale capital.

The dividing line in history seems to have been drawn. On one side is the traditional system caught in the "rate hike-debt deterioration" cycle, and on the other side are institutions continuously increasing their positions in crypto. The next phase of liquidity movement will likely determine the market direction. The performance of BTC and ETH will be the most direct reflection of this transition.

What do you think about this wave of capital flow changes?

BTC0.72%

ETH-0.01%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

8 Likes

Reward
8
7
Repost
Share

Comment

0/400

MetaLord420

· 2h ago

Are institutional players already so aggressive in bottom-fishing BTC, with 80 billion USD? Why am I still getting caught in the trap haha --- Japan is about to explode, retail investors are still watching K-line charts, while big funds have already entered the crypto space --- Is it true? BlackRock is buying tens of millions of dollars every day? Then I better jump on the train quickly --- I understand this logic, it’s just traditional finance is about to die, and crypto is about to take off --- A 27-year high yield, this time the Bank of Japan is really out of options --- So at a critical moment in history, which side to choose: join crypto or wait for death --- Wait, isn’t this another "this time is different" narrative... --- Can BTC and ETH break new highs this wave? Feels like the recent two days of rise weren’t aggressive enough --- What are institutions doing? I’m just following along, retail investors have never made money bottom-fishing

View OriginalReply0

CryptoNomics

· 2h ago

actually, if you run a basic correlation matrix on BOJ policy shifts vs institutional crypto accumulation, the r-squared is nowhere near statistically significant enough to support this thesis. but sure, let's ignore endogenous variables and pretend institutional flows are purely exogenous...

Reply0

just_another_wallet

· 2h ago

Damn, the institutions are really quietly bottoming out, and we're still flooding the screens discussing it? --- The Bank of Japan's move is really clever, equivalent to hitting the restart button on global liquidity... --- Wait, 80 billion USD? The pace of BlackRock is off, they must know something we haven't seen yet --- Retail investors are anxious about government bonds vs. institutions hoarding BTC, the gap is so big --- The idea of a historical dividing line is a bit off, but on the other hand, it does feel like something big is about to happen --- Once the rate hike cycle starts, money can only flow into new sectors, the logic makes sense --- I just want to know if this 80 billion will be kicked out after buying in, just thinking about it is exciting --- If the yen crashes, is that our opportunity? Or are we about to be harvested again --- Such large-scale institutional布局, it really feels like the next wave of the market will be different --- Why do I always feel like I'm always a half step behind, this kind of information gap...

View OriginalReply0

CexIsBad

· 2h ago

Wow, that 800 billion figure is no small change Institutions are fleeing the bond market and now rushing into the crypto space, this is what you call "forced choice" Retail investors are still anxious about government bonds, while others have already bottomed out BTC The Bank of Japan's move has completely changed the game rules, honestly If traditional finance can't innovate anymore, then crypto might be the last resort Betting on an ETH doubling in this wave, the chances don't seem low I checked the accumulation data this morning, BlackRock's frequency is a bit outrageous Liquidity is flowing into new assets, once this starts, it can't be stopped I just want to know, when all institutions are in position, what will retail investors' take be when they start to buy the dip Is the era of low interest rates in the yen really coming to an end? That would be a global impact Bro, are you currently positioning or just watching? It's basically the classic cycle of big fish eating small fish But this time, it really feels different, a bit afraid of missing out

View OriginalReply0

MetaNomad

· 2h ago

That's why I've been saying traditional finance is doomed; institutions are already betting on it. Japan's recent moves are truly the catalyst, retail investors are still bottom-fishing in government bonds, while the big whales have already quietly shifted to crypto. 800 billion is just the beginning; when mainstream awareness shifts, it will be even crazier. So the question isn't whether it will shift, but when to go all in. BTC and ETH will prove everything; this is an inevitable part of history.

View OriginalReply0

ChainPoet

· 2h ago

Japan can't continue playing over there, no wonder institutions are frantically accumulating, while we retail investors are still sleepwalking. This wave of BTC really has potential, let's wait and see how it plays out. Wall Street's ambitions are indeed huge; $80 billion is no small figure. The era of the Japanese Yen is coming to an end, and a new world of cryptocurrencies is opening up. It feels like destiny is shifting. Institutions often have the advantage of early positioning, while retail investors tend to be late to realize, which can be a bit heartbreaking. Liquidity shift is crucial; it determines who profits and who loses in the next cycle. BlackRock's move is really aggressive; hundreds of millions of dollars in a single day, they are definitely not short of money. Expectations of interest rate hikes are coming; how can traditional assets hold up? It's probably time to switch tracks. This time feels different; it really seems like a turning point in history. I just want to know, have institutions already bought at a discount, and can we still get on board?

View OriginalReply0

Web3ExplorerLin

· 2h ago

hypothesis: what we're witnessing here is basically the modern equivalent of the silk road collapse—except instead of trade routes, we're watching currency corridors implode. the BoJ boxed itself into this byzantine generals problem where every move contradicts the last... fascinating stuff honestly.

Reply0