The Bank of Japan is about to make a big move next Friday! The market is on edge because there's a big question: Will the central bank really raise interest rates in April?

A few days ago, Prime Minister Yoshihide Suga dropped a bombshell—announcing a general election in February, while also calling for tax cuts and easing tightening policies. This move indeed disrupted the market rhythm. The yen has been plunging wildly, government bond yields have risen, and imported inflation is becoming increasingly troublesome.

The key point is that the internal voices within the central bank have changed. Previously, the market bet that action would only come in July, but now many officials are saying: Why wait? It can be done as early as April. Interest rates are already at a 30-year high, and rising wages have pushed inflation expectations higher, creating immense pressure.

Governor Ueda Haruhiko's statement this Friday will be a turning point. He must walk a tightrope between stabilizing the yen and preventing government bond yields from spiraling out of control. The market widely expects the central bank to upgrade its economic growth forecast, paving the way for the next rate hike.

Once Japan accelerates its rate hike pace, global liquidity will tighten, and the crypto market will inevitably feel the impact. Everything could change this Friday.