Japan's Bond Yields Rise to Record Highs, Sparking Crypto Market Concerns

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Japan's 30-year bond yield climbed to 3.42%, a record high that is shifting market sentiment and rattling carry trade dynamics. The move pressures leveraged portfolios and could trigger crypto selloffs. Rising Japanese rates may tighten global liquidity, dragging down foreign capital flows and Bitcoin. Traders are watching risk-to-reward ratios closely, as past trends show Bitcoin often dips weeks after such yield surges.

According to Coinpedia, Japan's long-term bond yields have reached record highs, with the 30-year yield hitting 3.42%. This shift is pressuring global carry trades and liquidity, particularly affecting leveraged portfolios and increasing the risk of crypto market sell-offs. Analysts warn that rising Japanese rates could lead to tighter global financial conditions, reduced foreign capital flows, and heightened volatility in risk assets like Bitcoin. Traders are bracing for potential delayed impacts, as past cycles have seen Bitcoin decline weeks after similar yield spikes.

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