The post Silent Liquidity Crisis in Japan Could Trigger Next Crypto Crash appeared on BitcoinEthereumNews.com. Home » Crypto News Borrowing cheaply in yen andThe post Silent Liquidity Crisis in Japan Could Trigger Next Crypto Crash appeared on BitcoinEthereumNews.com. Home » Crypto News Borrowing cheaply in yen and

Silent Liquidity Crisis in Japan Could Trigger Next Crypto Crash

For feedback or concerns regarding this content, please contact us at [email protected]

Home » Crypto News


Borrowing cheaply in yen and deploying those funds into higher-risk assets abroad is becoming less attractive as Japanese yields rise.

‘;
}
function loadTrinityPlayer(targetWrapper, theme,extras=””) {
cleanupPlayer(targetWrapper); // Always clean first ✅
targetWrapper.classList.add(‘played’);
// Create script
const scriptEl = document.createElement(“script”);
scriptEl.setAttribute(“fetchpriority”, “high”);
scriptEl.setAttribute(“charset”, “UTF-8”);
const scriptURL = new URL(`https://trinitymedia.ai/player/trinity/2900019254/?themeAppearance=${theme}${extras}`);
scriptURL.searchParams.set(“pageURL”, window.location.href);
scriptEl.src = scriptURL.toString();
// Insert player
const placeholder = targetWrapper.querySelector(“.add-before-this”);
placeholder.parentNode.insertBefore(scriptEl, placeholder.nextSibling);
}
function getTheme() {
return document.body.classList.contains(“dark”) ? “dark” : “light”;
}
// Initial Load for Desktop
if (window.innerWidth > 768) {
const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper, getTheme(),’&autoplay=1′);
});
}
}
// Mobile Button Click
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper, getTheme(),’&autoplay=1′);
});
}
function reInitButton(container,html){
container.innerHTML = ” + html;
}
// Theme switcher
const destroyButton = document.getElementById(“checkbox”);
if (destroyButton) {
destroyButton.addEventListener(“click”, () => {
setTimeout(() => {
const theme = getTheme();
if (window.innerWidth > 768) {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if(desktopWrapper.classList.contains(‘played’)){
loadTrinityPlayer(desktopWrapper, theme,’&autoplay=1′);
}else{
reInitButton(desktopWrapper,’Listen‘)
const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper,theme,’&autoplay=1’);
});
}
}
} else {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if(mobileWrapper.classList.contains(‘played’)){
loadTrinityPlayer(mobileWrapper, theme,’&autoplay=1′);
}else{
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper,theme,’&autoplay=1′);
});
}
}
}
}, 100);
});
}
})();


Summarize with AI


Summarize with AI

Bitcoin’s next downturn may not begin within the crypto markets but from tightening liquidity conditions in Japan.

This is according to analyst Ted Pillows, who argues that rising Japanese bond yields could act as a potential trigger that could ripple through global markets and weigh adversely on digital assets.

Japanese Yields and Global Liquidity Pressures

Pillows wrote on X on March 30 that Japan’s long-standing low-interest-rate environment is beginning to change, and that higher long-term bond yields are putting stress on its financial system. He pointed out that rising borrowing costs are causing the value of existing bonds to drop, which in turn is leaving banks and pension funds exposed to losses.

The increased caution and lack of confidence often lead to a process the analyst called “liquidity tightening,” where less money flows through the system.

Historically, Japan has played a huge role in global liquidity through the so-called yen carry trade, which involves investors borrowing in yen, which is much cheaper, and then putting that money into higher-risk assets abroad. But according to Pillows, the strategy is becoming less attractive with yield going up, making investors pull back their funds. Ultimately, that shift can reduce liquidity across global markets, including crypto.

This shift in capital flow was hinted at earlier in the year, when the 30-year JGB yield exploded by 30 basis points in a single session, the highest level since the bond was introduced in 1999. This followed Japanese Prime Minister Sanae Takaichi’s call for increased government spending and simultaneous tax cuts ahead of snap elections in February.

The elections delivered a strong mandate for Takaichi, which observers at the time flagged as bearish for BTC in the near term due to the tighter global liquidity environment that could result from the Prime Minister’s fiscal policies.

You may also like:

Weakening On-Chain Signals Adding Pressure

Pillows’ worry comes at the same time as market activity that CryptoPotato has reported on several times, such as Bitcoin’s recent drop below $65,000 and rise back up to nearly $68,000.

The changes were connected to the ongoing conflict in the Middle East, including comments U.S. President Donald Trump has regularly made about the situation. Because of this, BTC has had a hard time holding higher levels, especially after failing to break through resistance around $72,000.

At the time of writing, the cryptocurrency was trading just under the $68,000 level, keeping it over 46% below its October 2025 all-time high. Meanwhile, CryptoQuant contributor Sunny Mom has noted a divergence forming in Bitcoin’s on-chain structure, as the whale accumulation that supported prices in January has now turned negative.

Furthermore, the Exchange Whale Ratio, which measures large inflows to trading platforms relative to total exchange inflows, has been steadily climbing in the last three months, with its 30-day average now approaching 0.6. In the past, high readings usually came right before selling pressure hit the market.

SPECIAL OFFER (Exclusive)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

Source: https://cryptopotato.com/analyst-silent-liquidity-crisis-in-japan-could-trigger-next-crypto-crash/

Market Opportunity
Helium Mobile Logo
Helium Mobile Price(MOBILE)
$0.0001418
$0.0001418$0.0001418
-6.27%
USD
Helium Mobile (MOBILE) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Role of Reference Points in Achieving Equilibrium Efficiency in Fair and Socially Just Economies

The Role of Reference Points in Achieving Equilibrium Efficiency in Fair and Socially Just Economies

This article explores how a simple change in the reference point can achieve a Pareto-efficient equilibrium in both free and fair economies and those with social justice.
Share
Hackernoon2025/09/17 22:30
Cryptos Signal Divergence Ahead of Fed Rate Decision

Cryptos Signal Divergence Ahead of Fed Rate Decision

The post Cryptos Signal Divergence Ahead of Fed Rate Decision appeared on BitcoinEthereumNews.com. Crypto assets send conflicting signals ahead of the Federal Reserve’s September rate decision. On-chain data reveals a clear decrease in Bitcoin and Ethereum flowing into centralized exchanges, but a sharp increase in altcoin inflows. The findings come from a Tuesday report by CryptoQuant, an on-chain data platform. The firm’s data shows a stark divergence in coin volume, which has been observed in movements onto centralized exchanges over the past few weeks. Bitcoin and Ethereum Inflows Drop to Multi-Month Lows Sponsored Sponsored Bitcoin has seen a dramatic drop in exchange inflows, with the 7-day moving average plummeting to 25,000 BTC, its lowest level in over a year. The average deposit per transaction has fallen to 0.57 BTC as of September. This suggests that smaller retail investors, rather than large-scale whales, are responsible for the recent cash-outs. Ethereum is showing a similar trend, with its daily exchange inflows decreasing to a two-month low. CryptoQuant reported that the 7-day moving average for ETH deposits on exchanges is around 783,000 ETH, the lowest in two months. Other Altcoins See Renewed Selling Pressure In contrast, other altcoin deposit activity on exchanges has surged. The number of altcoin deposit transactions on centralized exchanges was quite steady in May and June of this year, maintaining a 7-day moving average of about 20,000 to 30,000. Recently, however, that figure has jumped to 55,000 transactions. Altcoins: Exchange Inflow Transaction Count. Source: CryptoQuant CryptoQuant projects that altcoins, given their increased inflow activity, could face relatively higher selling pressure compared to BTC and ETH. Meanwhile, the balance of stablecoins on exchanges—a key indicator of potential buying pressure—has increased significantly. The report notes that the exchange USDT balance, around $273 million in April, grew to $379 million by August 31, marking a new yearly high. CryptoQuant interprets this surge as a reflection of…
Share
BitcoinEthereumNews2025/09/18 01:01
Upbit Halts POKT Transactions: Essential Network Upgrade Sparks Temporary Suspension

Upbit Halts POKT Transactions: Essential Network Upgrade Sparks Temporary Suspension

BitcoinWorld Upbit Halts POKT Transactions: Essential Network Upgrade Sparks Temporary Suspension In a decisive move impacting digital asset traders, the prominent
Share
bitcoinworld2026/03/31 14:30