Japan is sitting on 10 trillion USD in debt and JGB yields just hit record highs. They are preparing to sell 500 billion USD in US stocks to stabilize a system that is starting to break. Japan survived only because rates were near zero. Now yields rise, debt payments explode and interest eats revenue. No advanced economy escapes cleanly through default, restructuring or inflation. The global risk comes from their foreign holdings. Japan owns trillions abroad including more than 1 trillion USD in US Treasuries and massive equity positions. When JGBs finally pay real returns and hedged Treasuries lose money, capital returns home. This is simple math and it drains liquidity worldwide. The yen carry trade is the second shock. Over 1 trillion USD borrowed in cheap yen and pumped into stocks, crypto and emerging markets. As Japanese rates rise and the yen strengthens, these positions unwind violently. Forced selling spreads and margin calls hit across markets. US and Japan yield spreads tighten. Japan has less reason to keep money overseas and US borrowing costs rise regardless of Fed policy. If the BOJ hikes again in January, the yen jumps and the unwind accelerates. Risk assets feel it immediately including crypto and especially Bitcoin. Japan also cannot print freely. Inflation is already hot and more printing crashes the yen, lifts import costs and triggers domestic instability. They are trapped between debt pressure and currency pressure with no clean exit. For decades Japanese yields acted as the quiet anchor holding global rates down. That anchor just snapped. Bonds fall. Stocks fall harder. #Crypto feels the deepest shock. This is how everything looks stable until everything breaks at once.$BTC $GT #TariffTensionsHitCryptoMarket
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#JAPAN WILL CRASH THE MARKET IN 3 DAYS
Japan is sitting on 10 trillion USD in debt and JGB yields just hit record highs.
They are preparing to sell 500 billion USD in US stocks to stabilize a system that is starting to break.
Japan survived only because rates were near zero. Now yields rise, debt payments explode and interest eats revenue.
No advanced economy escapes cleanly through default, restructuring or inflation.
The global risk comes from their foreign holdings.
Japan owns trillions abroad including more than 1 trillion USD in US Treasuries and massive equity positions.
When JGBs finally pay real returns and hedged Treasuries lose money, capital returns home.
This is simple math and it drains liquidity worldwide.
The yen carry trade is the second shock.
Over 1 trillion USD borrowed in cheap yen and pumped into stocks, crypto and emerging markets.
As Japanese rates rise and the yen strengthens, these positions unwind violently.
Forced selling spreads and margin calls hit across markets.
US and Japan yield spreads tighten.
Japan has less reason to keep money overseas and US borrowing costs rise regardless of Fed policy.
If the BOJ hikes again in January, the yen jumps and the unwind accelerates.
Risk assets feel it immediately including crypto and especially Bitcoin.
Japan also cannot print freely.
Inflation is already hot and more printing crashes the yen, lifts import costs and triggers domestic instability.
They are trapped between debt pressure and currency pressure with no clean exit.
For decades Japanese yields acted as the quiet anchor holding global rates down.
That anchor just snapped.
Bonds fall. Stocks fall harder. #Crypto feels the deepest shock.
This is how everything looks stable until everything breaks at once.$BTC $GT
#TariffTensionsHitCryptoMarket