Many people are confused about today's market crash. There isn't anything major happening, right? The Federal Reserve hasn't said anything about not lowering interest rates? And no major figure has called Bitcoin garbage. So why has it dropped like this?
Because of Japan. Simply put, this is a bloodbath triggered by "repaying debts."
The core issue is that the yield on Japanese government bonds (JGB) has risen to 1.01%, the highest point in 17 years. With JGB soaring like this, interest rates need to rise. If they don't raise rates, Japan is finished.
This is quite frightening: global financial giants are rushing to repay their debts before Japan raises interest rates. So why can a small interest rate hike in Japan cause panic among global giants?
Because previously, the yen was super cheap, almost interest-free, and the big players specifically borrowed yen to buy various high-risk assets, like U.S. stocks and—our cryptocurrencies! Although the risks are high, the bigger the waves, the more valuable the fish.
Now Japan is saying: I'm going to raise interest rates, you need to pay back your money, and the interest won't be cheap!
The money they worked hard to get may not even be enough to cover the interest—who wouldn't panic? As a result, global financial giants have no choice but to sell off their coins to repay their yen "debts."
And that's how we ended up here today!
