Japan’s Bond Shock Slams Crypto: $640 Million Liquidated as 10-Year JGB Hits 17-Year High

Crypto markets experienced a sharp sell-off, resulting in approximately $640 million in liquidations across over 217,000 traders, after the 10-year Japanese Government Bond (JGB) yield spiked to 1.84%, its highest level since April 2008. This move is interpreted as the potential unwinding of the decades-long yen carry trade, where investors borrowed cheaply in Japan to fund higher-yielding global assets like US Treasuries, European bonds, equities, and crypto. As Japanese yields rise, global liquidity contracts, pulling capital back to Japan and tightening financial conditions worldwide. Analysts suggest this macro liquidity crunch, coinciding with the US ending quantitative tightening and China slowing Treasury purchases, is the primary driver behind the crypto volatility, as digital assets are highly sensitive to such shifts in global leverage and risk appetite.

(Source：BeInCrypto)