Analysis: The panic in the Japanese government bond market has spread to the cryptocurrency market.
PANews reported on January 20th that, according to CoinDesk, panic in the Japanese government bond market has spread to the cryptocurrency market. On Tuesday, the yield on 30-year Japanese government bonds surged more than 30 basis points to 3.91%, a 27-year high, triggering a sell-off in global risk assets.
A Saxo Bank commodity strategist pointed out that Japan's long-standing status as one of the world's most reliable sources of liquidity is now facing a persistently high yield on its government bonds, indicating a waning of this support and a tightening of global liquidity. This shift, coupled with factors such as Trump's tariff threats, has exacerbated market risk aversion. As a result, Bitcoin prices fell below $91,000, while gold and silver continued to reach new all-time highs. Analysts believe that the Bank of Japan has limited policy options; whether it attempts to suppress yields or tighten monetary policy, it could further exacerbate global liquidity tensions. Market concerns are growing that a continued rise in yields could ultimately trigger a "rupture" in the financial system.
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