Recently, Japan's long-term government bond yields have soared to new highs, but there's an interesting twist—it's not really because rate hikes have started, but because the market is trying to "front-run" the move.

Everyone is watching the Bank of Japan meeting on December 18-19, with a widespread expectation that the interest rate will jump from 0.5% straight to 0.75%. If the yen does see a rate hike, global capital markets are likely to take a hit (including the crypto space, since no one can escape the effects of tightening liquidity).

What's interesting now is that the market has already priced in most of the rate hike expectations, and whatever was going to drop has already dropped. But what if the Bank of Japan changes course at the last minute and doesn't hike as expected? Then the reversal could be even more dramatic than people think.