Everyone, there's a major development in the past couple of days worth paying attention to.

Japan's 10-year government bond yield just surged to 2.13%, the first time in 25 years. It might seem like just a number, but what does it imply? It could potentially rewrite the flow of global capital.

For a long time, Japan has been almost the cheapest source of funds worldwide. The central bank's negative interest rate policy and aggressive money printing have led overseas investors to favor holding yen to seek profits globally—whether in US stocks, US bonds, or the cryptocurrency markets. But now, the situation has reversed. The Bank of Japan announced the end of the negative interest rate era and is beginning to tighten policies. The reason is straightforward: inflationary pressures are rising, prices are increasing, wages are going up, and if they don't act now, bigger problems could emerge.

What does this mean?

**The possibility of capital reversal has increased.** As Japan's borrowing costs rise, those profits from carry trades might need to be recalculated. Some funds are likely to withdraw from overseas markets, including US stocks, US bonds, and of course, cryptocurrencies. Reduced liquidity will put significant pressure on assets that rely heavily on capital inflows.

**Japan itself faces new challenges.** The country's government debt is already very high, and rising interest rates mean increased repayment pressures. Could this structural risk spill over into the financial markets? It's hard to predict with certainty.

**The global financial landscape is quietly shifting.** This is not just Japan's issue but an important signal about the global capital supply. When the largest source of "cheap money" begins to tighten, market volatility could increase, and some vulnerable assets may be the first to feel the impact. As a high-risk sector, the cryptocurrency market is especially sensitive to liquidity changes.

What’s your take? Which market do you think will be most affected by this "Japanese storm"? Will US stocks come under pressure, the bond market experience turbulence, or will cryptocurrencies undergo a new round of shakeout? Share your thoughts in the comments.