Bitcoin traders should focus on Japan as leading economist warns of debt crisis

Japan’s debt-to-GDP ratio surpasses 240%, the highest in advanced economies. Inflation has surged, reaching levels last seen in the 1980s, raising concerns about fiscal sustainability. The 10-year government bond yield has climbed to 1.60%, increasing the cost of borrowing.

An upcoming U.S. Recession could temporarily lower Japanese bond yields, offering Japan some breathing room. However, questions remain whether the Japanese population will accept necessary tax increases and spending cuts as sustainable solutions.