The post Japan’s $3.4T Yen Carry Trade Unwinds and It’s Coming for Crypto appeared on BitcoinEthereumNews.com. Japan’s 10-year bond yield hit 1.728%, the highest since 2008, sparking fears of tighter global liquidity affecting crypto markets. Rising Japanese yields are reversing decades of cheap yen flows, pulling over $1 trillion from U.S. Treasuries. Despite short-term volatility, Bitcoin’s fixed supply and decentralization may make it an attractive hedge. Japan’s 10-year government bond yield has jumped to 1.728%, the highest since 2008. This is raising worries that global liquidity could tighten and affect crypto markets. This “bond shock” is compounded by a contracting Japanese economy, which shrank 0.4% in Q3, hurt by tariffs, weak exports, and higher domestic spending.  Analysts are warning this may be more than a simple market move; it could signal the end of a 30-year era where Japan’s ultra-low interest rates provided indirect, yet a massive subsidy to global risk assets, including crypto. Japan Ends the Era of “Free Money”  Data analyst Shanaka Anslem Perera described the development as the moment “Japan killed the global money printer.”  For decades, Japan kept interest rates near zero. This let investors borrow cheap yen and invest in higher-yield assets around the world — a strategy called the yen carry trade. It pumped over $3.4 trillion into U.S. Treasuries, European bonds, emerging-market debt, tech stocks, and even crypto, helping keep borrowing costs low and pushing global asset prices up. Now that Japanese yields are rising and the government is launching a new $110 billion stimulus package, that flow of money is starting to reverse.  Major Japanese pension funds, once huge buyers of U.S. Treasuries, are reportedly moving money back into Japan because overseas returns look worse once currency hedging is factored in. Perera believes this could pull as much as $1.1 trillion out of U.S. Treasuries, tightening global liquidity. Historically, when U.S. yields rise and liquidity shrinks, Bitcoin and… The post Japan’s $3.4T Yen Carry Trade Unwinds and It’s Coming for Crypto appeared on BitcoinEthereumNews.com. Japan’s 10-year bond yield hit 1.728%, the highest since 2008, sparking fears of tighter global liquidity affecting crypto markets. Rising Japanese yields are reversing decades of cheap yen flows, pulling over $1 trillion from U.S. Treasuries. Despite short-term volatility, Bitcoin’s fixed supply and decentralization may make it an attractive hedge. Japan’s 10-year government bond yield has jumped to 1.728%, the highest since 2008. This is raising worries that global liquidity could tighten and affect crypto markets. This “bond shock” is compounded by a contracting Japanese economy, which shrank 0.4% in Q3, hurt by tariffs, weak exports, and higher domestic spending.  Analysts are warning this may be more than a simple market move; it could signal the end of a 30-year era where Japan’s ultra-low interest rates provided indirect, yet a massive subsidy to global risk assets, including crypto. Japan Ends the Era of “Free Money”  Data analyst Shanaka Anslem Perera described the development as the moment “Japan killed the global money printer.”  For decades, Japan kept interest rates near zero. This let investors borrow cheap yen and invest in higher-yield assets around the world — a strategy called the yen carry trade. It pumped over $3.4 trillion into U.S. Treasuries, European bonds, emerging-market debt, tech stocks, and even crypto, helping keep borrowing costs low and pushing global asset prices up. Now that Japanese yields are rising and the government is launching a new $110 billion stimulus package, that flow of money is starting to reverse.  Major Japanese pension funds, once huge buyers of U.S. Treasuries, are reportedly moving money back into Japan because overseas returns look worse once currency hedging is factored in. Perera believes this could pull as much as $1.1 trillion out of U.S. Treasuries, tightening global liquidity. Historically, when U.S. yields rise and liquidity shrinks, Bitcoin and…