The recent interest rate hike signals released by the Bank of Japan are stirring the nerves of the global Capital Market.

The market is generally concerned that once the yen interest rate differential narrows, a large amount of arbitrage funds that have flowed into U.S. assets over the past few years may return to Japan—this "blood-letting effect" is not good news for U.S. stocks, U.S. bonds, or even the cryptocurrency market. More importantly, if Japan really starts its interest rate hike cycle early next year, the Federal Reserve's originally planned pace of rate cuts may be disrupted.

After all, global liquidity is a connector. While Japan tightens its policy, the Federal Reserve wants to loosen? That needs to weigh the pressure of capital outflow. Now the traders on Wall Street are watching two calendars: one is the Federal Reserve's December interest rate meeting, and the other is the Central Bank of Japan's policy statement at the end of the year.

Once the liquidity expectations change, it's really hard to say how risk assets will move.