According to a research report released by China Merchants Bank, the Bank of Japan raised interest rates by 25 basis points on December 19th, increasing the policy rate to 0.75%. While the Bank of Japan is likely to maintain a highly restrained pace of rate hikes, the reversal in yen liquidity and the Japanese bond market will continue to exert downward pressure on global financial conditions. Firstly, yen carry trades may see a sustained reversal, exerting long-term downward pressure on global asset liquidity. As of the end of 2024, approximately $9 trillion in liquidity will still be sourced from low-interest yen; this liquidity may steadily shrink as the US-Japan interest rate differential narrows. Secondly, Japanese bond risks may further escalate. In the short term, the Sanae Takaichi government approved a supplementary fiscal budget equivalent to 2.8% of nominal GDP; in the long term, Japan plans to increase defense spending to 3% of nominal GDP and permanently reduce the consumption tax. The Japanese government's untimely fiscal expansion stance may trigger greater market concerns, potentially leading to a steeper rise in medium- and long-term Japanese bond yields and a faster steepening of the yield curve. (Jinshi)

According to Onchain Lens monitoring, BitMEX co-founder Arthur Hayes (0x6cd...7e21) withdrew 1.22 million ENA tokens from Binance, worth $257,600.

According to Odaily Planet Daily, MSCI will decide on January 15th whether to remove Strategy from its indices. Analysts at Wall Street investment banks Jefferies and TD Cowen point out that if Strategy is ultimately removed, other indices in global financial markets may follow suit, including the Nasdaq 100, the CRSP US All-Market Index, and the FTSE Russell index from the London Stock Exchange Group. Currently, the Nasdaq 100 has retained Strategy. The CRSP declined to comment on whether it is considering removing Strategy, while a spokesperson for the London Stock Exchange Group stated that they will continue to monitor the matter, but responses to inquiries will follow their internal management procedures. (Reuters)

According to Odaily Planet Daily, Peter Brandt stated that the Clarity Act will help increase the adoption of cryptocurrencies, but it will not help the price of BTC. (Cointelegraph)

According to PRNewswire, Valour, a subsidiary of Nasdaq-listed DeFi Technologies, announced on December 20th the launch of constant leverage Bitcoin and Ethereum exchange-traded products BullBitcoinX2Valour and BullEthereumX2Valour on the Swedish stock market Spotlight StockMarket, offering investors the opportunity to invest in Bitcoin and Ethereum with up to 2x leverage.