A shock in Japan’s bond market has crypto traders on edge and analysts warning of possible turbulence for XRP in the days ahead. What happened - Japan’s 10-year government bond yield has surged to levels not seen since the 2008 financial crisis, rising toward roughly 1.8%–2.0% as markets move away from decades of near-zero rates. - The move follows a shift in BOJ policy: the Bank of Japan has lifted its benchmark short-term rate to about 0.75% — the highest in roughly 30 years — in response to inflation persistently above its 2% target and firmer wage growth. Why it matters for crypto (and XRP) - Rising government yields tighten global liquidity and change capital flows. As safer, yield-paying bonds become more attractive, risk assets — including equities and cryptocurrencies like XRP — can come under pressure. - Higher yields also make leveraged positions more expensive to hold and increase the likelihood of forced deleveraging or liquidations, which can amplify price swings in relatively illiquid markets such as crypto. - Because Japan is the world’s fourth-largest economy, a meaningful repricing of its bond market has outsized effects on global risk sentiment and funding conditions. What analysts are saying - Crypto commentator Levi flagged the milestone move in Japan’s 10-year yield and warned traders to “get ready for XRP volatility next week,” suggesting the bond shock could spill over into crypto markets. - Ted Pillows echoed that view, highlighting the break above the 2008 yield level and cautioning that the coming week could be “really volatile.” Bottom line Japan’s sudden rise in yields is more than a local story — it’s a global liquidity signal. That dynamic is feeding expectations that XRP (and other risk assets) could see heightened volatility in the near term as markets adjust to tighter financial conditions. Traders should be prepared for outsized moves and consider risk and leverage management accordingly. Read more AI-generated news on: undefined/news

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