Global bond market ructions (likely reflecting term-premium repricing and fiscal supply concerns) and AI concentration risk (mega-cap tech crowding that has pulled capital into a narrow equity cohort) are two sides of the same coin: a market where liquidity is concentrated in fewer names and fewer duration buckets. Australia's regulator is essentially pre-flagging that if a bond-market shock forces deleveraging, the exit door is narrow — and crypto, as a 24/7 liquidity sponge, is where that deleveraging often shows up first.

Australia's regulator warned that global bond market turmoil and AI-related concerns threaten to weaken financial market liquidity.