Japan's Rate Shock Sparks Crypto Market Concerns
The recent rate hike in Japan has sent shockwaves through global markets, and experts are warning that this could have significant implications for Bitcoin.
Japan's 30-year bond yield is nearing historic highs, reaching 4.205% last tested in May, while the 10-year yield has surpassed 3%, a level not seen since 1996.
The US Treasury Secretary Scott Bessent met with Japan's Finance Minister and Bank of Japan Governor at the G20 finance gathering, pressing for rate hikes and a clearer fiscal plan. Bessent stated that he believes the Japanese government and BOJ will do what leads to a stronger yen.
This has led to a surge in yen carry trade costs, with the two-year yield hitting a 31-year high, making it more expensive to borrow yen for leveraged bets across equities, bonds, and crypto.