Japan Bond Market Crisis Hits Crypto: Rising Yields Threaten Bitcoin and Risk Assets

Turmoil in Japan's government bond market (JGB) is creating waves of fear across global risk assets, including cryptocurrencies. As yields on Japanese bonds surge, investors are bracing for potential contagion. The core issue is the Bank of Japan's (BOJ) potential shift from its long-held ultra-loose monetary policy, which has fueled global liquidity for years. Market analysts warn that "yields will keep rising until something breaks," signaling a high-stakes environment. This flight from risk is putting significant pressure on Bitcoin (BTC), Ethereum (ETH), and the broader crypto market, as traders liquidate speculative positions. The situation underscores the growing correlation between traditional finance and digital assets during periods of macroeconomic stress. Investors are now closely monitoring BOJ policy signals, as further yield spikes could trigger deeper sell-offs in crypto and equities.