Panic in the Japanese bond market hits Bitcoin
• The yield on 30-year Japanese government bonds soared to nearly 4% (the highest in 27 years)
• For decades, investors have taken cheap loans in yen and invested them in risky assets around the world. Now this scheme is collapsing
• One of the most reliable sources of global liquidity is disappearing. Capital is returning to Japan, draining money from global markets
• Result: stocks are falling, gold and silver are reaching new highs, Bitcoin is declining along with other risky assets
What’s next?
On Friday, the Bank of Japan will announce its interest rate decision. The market expects a pause, but any hints at further rate increases could increase pressure on crypto.