Key Highlights
- However, the BOJ also made it clear it still sees a path where further hikes remain possible and that it's not treating 0.75% as a finish line. At the same time, Japan’s government bond market pushed into territory that would have been unthinkable during the yield-curve-control era.
- The 10-year JGB stood around 2.25% on Jan.
- 28, roughly double what it was just a year ago. The biggest stress point is the long end: the 40-year yield pushed through 4% during the late-January selloff, turning a very technical bond report into a referendum on whether the “free money” Japan every trade came to love still exists. Bitcoin's connection to Japan is simple.
- It certainly doesn't need Japan to spiral into a full-blown crisis to get dragged around, just a short little burst of yen volatility that forces leveraged trades to shrink across markets at the same time.
- When that happens, crypto tends to trade like high-beta liquidity until positioning resets.
