Asia Morning Briefing: Rising Japan Yields Hit Risk Assets as BTC Slides

Short-term Japanese government bond yields reached their highest level since 2008, briefly touching 1.01 percent, as traders anticipated the Bank of Japan (BOJ) ending its long period of near-zero rates following comments from Governor Kazuo Ueda about evaluating a rate hike. This rise in yields strengthened the yen and accelerated the unwinding of yen-funded carry trades, which had previously supported risk assets. Crypto markets were significantly impacted, with Bitcoin sliding below $87,500 and Ether falling toward $2,850, leading to over $150 million in BTC long liquidations. Prediction markets show a 50% chance being priced in for a December rate increase by the BOJ, and market focus remains on future BOJ communications for potential further volatility.

(Source：CoinDesk)