Japan may really take serious action this time – it’s no longer just talk.

Their 2-year government bond yield has broken through 1% for the first time in 17 years. Doesn't sound like a big number? But the signal is very clear: Japan is no longer playing the zero interest rate game.

The impact of this matter extends far beyond Japan. It is important to know that the yen has long been the cheapest bucket of water in the global pool of funds — borrowing yen and then investing it in places with higher returns is a strategy known in the financial circles as "carry trade," which has been played for decades.

The faucet is now starting to tighten. The supply of low-cost funds is shrinking, and markets that have been accustomed to cheap money globally must reassess. Especially risk assets—whether in the stock market or the cryptocurrency circle—are likely to experience even more exaggerated fluctuations than before.

In simple terms: the rules of the game are changing, and it's not so easy to borrow money anymore.