โข Japan might hike rates this week (Dec 18โ19) โข That news spiked Japanese bond yields โข Higher yields = money pulls out of risk assets โข Stocks, BTC, alts โ dump
Why Japan matters: Japan has fueled cheap money for decades. When BOJ tightens โ carry trades unwind โ liquidity dries up โ markets fall fast.
Extra pressure: โข Dec 19 options expiry (stocks + ETFs worth trillions) โข These events often push markets down before settling
Whatโs next: โข BOJ hikes โ possible quick flash crash, then bounce โข No hike โ relief rally into month-end