Speaking of interest rate hikes in the Japanese yen, many people immediately think of yen appreciation and liquidity tightening, which will definitely put some pressure on Bitcoin in the short term. This judgment itself is not wrong, but if you look at it over a longer period, you will find a very interesting phenomenon—this move of raising interest rates in Japan is actually silently endorsing the value logic of Bitcoin.

Why do I say this? Let’s first think about what an interest rate hike itself represents. An interest rate hike is never a proactive choice by the central bank; it is usually made out of necessity. A country's central bank only raises rates when inflation has gotten out of control and continuing to flood the market with money would cause serious problems.

Japan, as an economy that has maintained ultra-low interest rates for a long time, is now actually raising rates. What does this indicate? It shows that the underlying economic problems are now front and center and can no longer be hidden.

What’s even more painful is that Japan simply cannot bear the weight of high interest rates. The government debt has long surpassed 250% of GDP, and once interest rates go up, the additional annual interest payments will be astronomical. So, this round of rate hikes is essentially a temporary painkiller, and it won’t last long.

The final outcome is pretty predictable: either cut rates again or rely on inflation to slowly eat away at the debt. This routine has been played out countless times in the fiat currency world.

But Bitcoin operates under a completely different logic. It doesn’t rely on any central bank for support, and it doesn’t care about interest rate policies being tinkered with. It also doesn’t need to rely on debt to survive. Its total supply cap is hardcoded and cannot be changed.

So, how the market moves is actually quite understandable: in the days immediately following the rate hike announcement, Bitcoin might fluctuate with market sentiment; but in the long run, every cycle of “central banks stubbornly raising rates—policies ultimately ineffective—being forced to restart money printing” repeatedly proves the necessity of Bitcoin’s existence.

Central banks are rushing to raise rates to save the fiat currency, trying to rescue the bleeding fiat credit; but Bitcoin, its value has never needed anyone to save it.