Welcome to the morning crypto news from the United States—summarizing the most important crypto news for the upcoming days.
Grab a cup of coffee as the global market quietly shifts, with Japanese bond yields soaring and the BoJ hinting at an interest rate hike. Decades-long yen trading that drives stocks, crypto, and risk assets may be unwinding faster than anyone expected.
Today's crypto news: Bitcoin is on alert as the Bank of Japan may end a decade of cheap money.
The global market is bracing for potential macro shocks as the Bank of Japan (BoJ) prepares for a monetary policy meeting on December 18-19.
Traders anticipate a 90% chance of a 25 basis point rate hike, according to signals from BoJ Governor Kazuo Ueda and inflation consistently above 2%.
The yield on Japan's 2-year government bonds has risen above 1%, the highest level since the global financial crisis of 2008, while 10-year JGBs have reached a 17-year high, reflecting rising borrowing costs.
Why is the Yen Carry Trade important?
For almost three decades, yen trading has driven global risk. Investors borrow yen at low rates, convert it to USD, and invest in higher-yielding assets, including stocks in the United States, bonds, and digital currencies like Bitcoin.
When Japan raises interest rates or the yen appreciates, this trading will unwind sharply, leading to rapid asset sell-offs.
The consequences are not merely hypothetical: in August 2024, the BoJ's interest rate hike caused the crypto market to lose USD 600 billion, with Bitcoin dropping to USD 49,000 and resulting in USD 1.14 billion in position liquidations. Analysts warn that similar events could recur if Japan's yields continue to rise.
In addition to Paul Barron, analyst Great Martis also describes the BoJ's interest rate hike as an indicator in the crypto and global markets.
When the BoJ has to raise interest rates, yen trading will begin to ease, causing unrest in the market. Indicators in the Martis market are noted in the post.
Meanwhile, the first signs of stress are appearing as hedge funds and institutional investors monitor liquidity tightening in Japan, the United States, and China, a rare convergence that could accelerate debt reduction.
However, there are still arguments. Negentropic analysts point out that most debt has already been cleared since October. In the same vein, Bob Elliot stated that yen-dependent trading has mostly quieted down.
but even a slight tightening could pressure highly leveraged crypto positions and risk assets around the world.
If QE is not implemented immediately, what’s next for Bitcoin and risk assets around the world?
Nic Puckrin, co-founder of Coin Bureau, emphasizes that quantitative easing (QE) often follows crises, not standard interest rate adjustments.
The current tightening in Japan, the United States, and China indicates that the market may face further declines before liquidity support arrives. Investors betting on easy money may encounter higher volatility than expected.
The crypto market is often the first to absorb the impacts of finance, making Bitcoin and Ethereum indicators of liquidity stress.
With the BoJ's interest rate decision approaching, traders should monitor:
The yield on Japanese government bonds (JGB),
USD/JPY levels and
highly leveraged positions
If Japan continues tightening, global debt reduction may extend into 2026, testing the stress tolerance of both the crypto and traditional markets.
The era of easy money from Japan may be coming to an end. The market now faces a more volatile environment where fundamental value may replace debt usage as the primary driver of asset prices.
Daily chart
This is a summary of crypto news from the United States to follow today:
Why hasn't the XRP price increased despite Ripple's significant movements.
Polymarket traders made USD 1 million from betting on Google searches, raising concerns about insider trading.
Bitcoin supply on the exchange is nearing a 5-year low after the USD 2 billion purchase this week.
The IMF warns that stablecoins pose risks to financial stability as cross-border money flows surpass Bitcoin and Ethereum.
Four reasons why December may be the best time to start DCA in altcoins.
Wolfe Research identifies 'peak conflict' as a key signal for the Bitcoin market: what does it mean?
Yi He's advice to women: 'No one is complaining about you doing business.'
Overview before the crypto stock market opens.
Company Strategy (MSTR) USD 186.01 USD 184.62 (-0.75%) Coinbase (COIN) USD 274.05 USD 273.30 (-0.27%) Galaxy Digital Holdings (GLXY) USD 27.57 USD 27.73 (+0.58%) MARA Holdings (MARA) USD 12.44 USD 12.37 (-0.57%) Riot Platforms (RIOT) USD 15.59 USD 15.57 (-0.13%) Core Scientific (CORZ) USD 17.08 USD 17.09 (+0.059%)
Opening competition for Crypto robots: Google Finance.
