The cryptocurrency market has experienced a significant decline, with the total market value dropping by about 5% in 24 hours. The price of Bitcoin and Ethereum fell by more than 5%, leading to liquidations of nearly 640 million dollars from over 217,000 traders. 📉

The rapid changes in this market were triggered by Tokyo, where the yield on Japan's 10-year government bonds soared to 1.84% – a level not seen since April 2008. This development is mainly regarded as a potential reversal of decades-long yen carry trades.
For nearly 30 years, low interest rates in Japan have allowed investors to borrow yen at a low cost and invest in higher-yielding assets globally. This includes U.S. Treasury bonds, European bonds, stocks, and cryptocurrencies, boosting global liquidity.
Now, the increase in Japanese yields is threatening to reverse this flow, pulling capital back to Japan and tightening global liquidity. As one analyst pointed out, this fundamental shift means that Japan, once a source of cheap capital, is now acting as a "debt collector."
This narrowing of global liquidity could affect the revaluation of assets across the market. It may explain the recent volatility of Bitcoin and the significant revaluation potential of Silver. 📈