2025-12-24 06:40:22

A decision by the Bank of Japan is shaking the global markets.

Behind this are a group of Japanese investors known as "Mrs. Watanabe"—they have accumulated $14 trillion in assets through 20 years of yen arbitrage. The strategy is simple: borrow low-interest yen, invest in US stocks, US bonds, and tech giants. This game was once incredibly smooth.

Until the Federal Reserve cut rates and the Bank of Japan signaled a possible rate hike. The arbitrage space instantly collapsed.

What’s happening now? Trillions of dollars are fleeing overnight. Selling US bonds, liquidating tech stocks, exchanging yen to pay off debts—this massive retreat is directly impacting global markets. And this isn’t the first time. In 2022, the Japanese government sold US bonds to stabilize the exchange rate, and now the collective flight of private capital has triggered a series of warnings for leveraged funds.

In the midst of global financial restructuring, the crypto market is brewing a change. Ethereum upgrades are happening frequently, and new concept tokens are gaining popularity. It’s a window of opportunity for rebalancing asset allocations.

When the large capital withdrawals are complete, the true face of the market will be revealed. What do you think about this cycle?

BNB0.59%

ETH-0.12%

SOL-0.92%

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.

4 Likes

Reward
4
5
Repost
Share

Comment

0/400

FlashLoanLarry

· 11h ago

Mrs. Watanabe collectively liquidated, now the whole world has to pay the price haha To be honest, I don't understand this move, but it feels like the crypto world is about to get hit hard ETH upgrade didn't help, big funds say run and they run, us retail investors can only buy the dip or get trapped

View OriginalReply0

AirdropHunterKing

· 11h ago

Bro, with this wave of Japanese aunties fleeing, we need to buy the dip. Damn, trillions of dollars dumped, perfect time to scoop up some gains. I've already been verifying wallet addresses for those new Ethereum contract interactions. Asset reallocation? Basically, big players cut profits from retail investors, and now it's our turn to go in and harvest. This round of shorting is crucial. --- Really, I remember the pitfalls of 2022. The current rhythm is the same—when big funds retreat, it's actually the most active time for new projects. When engagement skyrockets, it's time to jump in. --- Wait, during such major events, new tokens tend to surge in popularity, but we need to carefully check the contracts. Don’t get scammed by a bunch of worthless tokens again. --- Mrs. Watanabe lost her underwear in the process, but on our side, the opportunity has come. When gas fees are low, it's time to act. --- Damn, I keep double-checking addresses. I just can't break this habit.

View OriginalReply0

ProofOfNothing

· 11h ago

Mrs. Watanabe's wave of retreat like a liquidation of韭菜, the crypto circle should have seen it clearly long ago. Only after the big funds have finished moving, can we truly be bottom hunters. The contract leverage crowd is probably about to get爆穿, serves them right. Can ETH withstand this upgrade? Honestly, it's a bit悬. US bonds are爆卖, and the retail investors are the last to get hurt, old套路. Commodities are about to take off, funds need to run somewhere. The 20-year arbitrage game has broken down, this story is enough to be turned into a script. I'm just waiting for the coin price to跳水, then buy low in a wave. Who is really bottoming out and taking the plunge, they are the true winners. The BNB ecosystem is okay, but don't expect it to stand alone. This cycle will take several months to see the direction clearly, anxiety is useless. The move by the Bank of Japan directly揭破 the illusion of global liquidity. The SOL ecosystem is still under construction, yet it has become a避风港? Interesting. Asset allocation is being reshuffled again, no one can say where the new opportunities are. Fund managers going for de-leverage probably can't sleep well now.

View OriginalReply0

BTCWaveRider

· 11h ago

Mrs. Watanabe's arbitrage game is finally about to collapse, and this time it's really different. Damn, this wave of yen appreciation is causing chaos, both US bonds and US stocks are fleeing, could crypto actually have a chance? Wait, tens of trillions of dollars are fleeing, this won't cause a market crash, right... Why has SOL been so strong these days? Is someone bottom-fishing? Speaking of which, the central bank's move is indeed brilliant; the 20-year arbitrage dream is gone overnight.

View OriginalReply0

DevChive

· 11h ago

Mrs. Watanabe finally can't take it anymore, this is going to be fun. Can't sell US bonds anymore? Then let's see how our crypto performs, anyway, dollar liquidity flowing this way is only a matter of time. This wave is either a big rise or a big fall, no third option, are you betting or not? Wait, this arbitrage game has been going on for 20 years? How is that possible? The large capital withdrawal is just the right time to get in, we're just waiting to take over. Is it true? Trillions of dollars just leaving like that? Then ETH and BNB must go crazy in the next couple of days. The Japanese are getting anxious, what does that mean? It indicates that something big is about to happen, I bet SOL is at the bottom.

View OriginalReply0