$150B wiped: Bitcoin drops below $87k on Japan yield shock

Bitcoin's price dropped nearly 5% to below $87,000 in early Asian trading, erasing about $150 billion in total crypto market capitalization. This decline was primarily triggered by a surge in Japanese government bond (JGB) yields, which reached levels unseen since 2008, signaling potential Bank of Japan (BOJ) rate hikes and threatening the yen carry trade. The selloff was exacerbated by extremely low market liquidity, as trading volumes had recently hit multi-month lows, causing a structural failure that amplified the 5% drop. This event led to $636.69 million in liquidations, though analysis shows Bitcoin traders were de-risking while Ethereum traders were aggressively adding leverage, creating a lopsided risk profile. The market is now watching for structural support in the mid-$80,000s, with analysts noting that a failure to reclaim $90,000 could lead to further declines.

(Source：CryptoSlate)