#JapaneseInvestors $BTC #latestactivities
$ Japan Bond Yields Hit Multi-Decade Highs, Threatening Global Crypto Liquidity
Why It Matters for Crypto
- Bitcoin fell from $65,000 to $49,000 following the Bank of Japan's July 2024 rate hike, triggering $1.14 billion in liquidations and demonstrating cryptocurrency's vulnerability to Japanese policy shifts.
- Rising yields increase the opportunity cost of carry trades that have historically provided liquidity to Bitcoin, forcing capital repatriation to Japan from global markets.
- The yen carry trade involves an estimated $350 billion in transparent positions and potentially $20 trillion including derivatives, according to market research.
- Bitcoin traded around $91,121 on January 20, down 27% from its October 2025 peak of $126,080, as global liquidity conditions tighten.