Surge in Japanese bond yields may disrupt global carry trade and cryptocurrency markets

Japan’s 10-year bond yield has reached 1.86%, prompting concerns about a flight back to domestic investments. This shift could pose risks for global cryptocurrencies as capital flows may divert from assets like Bitcoin.

With liquidity tightening, analysts warn of potential sell-offs in riskier assets, including Bitcoin. Historically, cryptocurrencies thrive in low-rate environments, and as yields rise, the speculative capital may diminish.