Next week could be dangerous for cryptocurrencies 🚨
Something big happened in the bond market and most traders are sleeping on it.
The yield on the Japanese 10-year bond has now surpassed the 2008 financial crisis level after the Bank of Japan raised interest rates to the highest point in about 30 years 🇯🇵
And here is the main thing that most people are missing 👇
When Japanese yields rise sharply, cryptocurrencies do not collapse immediately.
It usually happens in the following week.
Look at the pattern:
• Bank of Japan's hike in January 2025 → BTC collapsed by 7% the following week
• Bank of Japan's hike in March 2025 → BTC collapsed by 10% the following week
• Bank of Japan's hike in July 2025 → BTC crashed by 20% the following week
That's why next week matters.
We could see another sharp move downward - that movement may indicate a local bottom 📉
But do not confuse 'local bottom' with final bottom.
Unlike previous cycles, Bitcoin still respects the 4-year cycle structure.
Yes, a rebound can happen.
But a new ATH is unlikely to happen quickly.
The critical point only comes when liquidity returns.
Here’s how it usually happens 👇
• Rising yields in Japan → investors sell risk assets
• Stocks, cryptocurrencies, and even bonds face pressure
• U.S. yields rise more → debt becomes harder to bear
• When yields rise too much, central banks are forced to act
History shows they do not allow the bond market to collapse.
What follows?
• Policy reversal
• Liquidity injection
• QE .. just like 2020–2021 🖨️
In the short term:
• Rising yields = pressure on cryptocurrencies
• Volatility remains high
In the medium to long term:
• Bond pressure forces easing
• Liquidity flow back
• Cryptocurrencies benefit more
That's why patience matters.
Complete reset creates generational opportunities and smart money is already waiting
$BTC
