Bitcoin

Japan's decades-long ultra-loose monetary policy made it the world's largest exporter of cheap capital. If domestic yields rise and equities wobble, Japanese institutions may repatriate funds, draining liquidity from global markets, including crypto. This mirrors the August 2024 yen carry unwind that briefly crashed BTC by 15%.

The chief executive of Mitsubishi Corp warned that Japan's stock market bull run is at risk and urged companies to deploy cash more efficiently amid concerns that rising bond yields could hurt equities.