šØ Next Week Could Be Dangerous for Crypto šØ
Something big just happened in the bond market, and most traders arenāt noticing.
Japanās 10-year bond yield has now broken above the 2008 financial crisis level after the BOJ raised rates to the highest in nearly 30 years šÆšµ
The Key Point
When Japan yields rise sharply, crypto usually reacts the following week, not immediately.
Past patterns:
Jan 2025 BOJ hike ā BTC dropped 7% the next week
Mar 2025 BOJ hike ā BTC dropped 10% the next week
Jul 2025 BOJ hike ā BTC dropped 20% the next week
This coming week could see another sharp drop, potentially marking a local bottom š
But local bottom ā final bottom. Bitcoin still respects the 4-year cycle structure.
Typical Flow
Rising Japan yields ā investors sell risk assets
Stocks, crypto, and bonds face pressure
US yields rise ā debt costs increase
Excessive yields ā central banks step in
What follows:
Policy reversals
Liquidity injections
QE, just like 2020ā2021 šØļø
Impact on Crypto
Short term:
High yields ā crypto under pressure
Volatility stays elevated
Medium to long term:
Bond stress ā easing measures
Liquidity returns
Crypto benefits the most
Patience is key. Full resets create generational opportunities, and smart money is already waiting š¼
$BTC
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