Which Asian markets or assets will benefit most, and how can investors position themselves early?

Everyone’s waiting for the FED to save the markets. Whether it’s through emergency rate cuts or fresh QE, investors are glued to Powell’s every move. But what if the next major rally won’t come from the US at all?
In fact, it’s already quietly brewing in Asia—and if you’re not paying attention to what's happening in China and Japan, you might completely miss the first wave of global liquidity.
Markets Have Been in Panic Since April 2nd
Since April 2nd, the global economy has entered full panic mode:
🔹 Global stocks, bonds, commodities, and crypto are all falling
🔹 US stocks alone have lost over $8 trillion in market cap
🔹 Bond yields, which should be dropping in such an environment, are actually rising
The 10-year US Treasury yield is now 18 basis points (0.18%) higher than on “Liberation Day,” despite the enormous risk-off sentiment across the board.
Why Are Bond Yields Rising Amid a Market Crash?
There are two big drivers behind the unexpected rise in yields:
🔹 China Dumping T-Bills
🔹 China has sold nearly $50 billion in US Treasuries in recent weeks
🔹 This mass liquidation pushed bond prices down and yields up
🔹 The reason may be retaliation in the ongoing trade war—or an effort to raise USD liquidity
🔹 China still holds around $700 billion in US Treasuries, so more selling could follow
🔹 Basis Trade Blow-Up
🔹 Hedge funds have been using the “basis trade,” a leveraged arbitrage strategy between Treasury futures and cash bonds
🔹 These trades are often levered 50x to 100x, so they’re highly sensitive to market swings
🔹 Trump’s new tariffs triggered a market crash, forcing funds to raise cash
🔹 Many hedge funds are facing margin calls and are selling bonds to survive
🔹 This massive unwinding is further flooding the market and driving yields up
🔹 The notional size of these trades is estimated at $1.8T to $2T

The result? An environment where yields rise despite a flight to safety, making it harder for the FED to act without worsening the situation.
What If the FED Does Nothing?
Let’s consider the possibility that the FED won’t announce any emergency cuts or QE. Does that mean crypto is doomed to bleed?
Actually, no—and here’s where Asia enters the picture.
China Is Already Devaluing the Yuan
On April 8th, China’s central bank (PBOC) set the yuan’s daily reference rate at 7.2038 per USD, signaling a clear intent to weaken the currency.
🔹 The yuan is allowed to fluctuate within a 2% band around the midpoint
🔹 Breaking above the 7.2 level shows that the PBOC is encouraging further weakness
Why would China want a weaker yuan?
🔹 1. Boosting Exports
🔹 A devalued yuan makes Chinese products cheaper in dollar terms
🔹 Example: If a toy costs 20 yuan to make
  • At 1 yuan = 1 USD → it sells for $20
  • At 1 yuan = 0.5 USD → it sells for $10
🔹 Result: Chinese exports become more attractive globally
🔹 2. Inflating Away Debt
🔹 As of 2023, China’s total debt (including non-financial sectors) is 285% of GDP
🔹 Currency devaluation reduces the real value of outstanding debt
🔹 It’s a strategic move to lighten the debt burden without defaulting
How This Helps Crypto
If the FED won’t cut rates or inject liquidity, why should crypto pump?
Because Asia is about to unleash its own liquidity wave, just like it did in the past.
During the 2016–2017 bull market:
🔹 The FED was raising rates, not cutting
🔹 The FED began a QT program in Sept 2017
🔹 Still, BTC rose from $200 to $20,000
🔹 Altcoins exploded with 100x–500x gains
What caused the rally?
🔹 China’s yuan devaluation in Q3 2015
🔹 Europe’s massive QE program
History is rhyming, and this time it’s China and Japan leading the charge.
Massive Capital Sitting in China
China has enormous capital reserves that could start to move as the yuan weakens:
🔹 As of January 2025, total deposits in China are $42.3 trillion
🔹 In comparison, the US has $17.93 trillion in deposits
🔹 China’s state-owned banks alone hold over $20 trillion USD equivalent in deposits
During a currency devaluation, capital tends to flow into global assets to preserve value.
🔹 Despite capital controls, crypto offers a borderless, fast, and secure option
🔹 That’s why crypto will likely become one of the biggest beneficiaries of Chinese capital flight
Japan May Be the First to Announce QE
After the recent market open, the Bank of Japan held a three-way emergency meeting with:
🔹 Ministry of Finance
🔹 Financial Services Agency
🔹 Bank of Japan
The discussion likely focused on:
🔹 The collapsing Japanese stock market
🔹 Surging bond yields
🔹 Risk of a yen carry trade crisis
Conclusion?
🔹 Japan may be the first major economy to pivot with rate cuts and QE
🔹 In 2017, it was Europe and China fueling the bull market
🔹 In 2025, it’ll be China and Japan
Conclusion: Liquidity Is Coming—But Not From Where You Expect
The world is watching the FED. But while Powell stays cautious, Asia is already moving.
🔹 China has imposed 84% tariffs on US goods
🔹 Trade wars are intensifying
🔹 Capital is fleeing from Asia’s weakening currencies
🔹 The BOJ is preparing to inject liquidity
🔹 Crypto remains the best vehicle for cross-border wealth preservation
Don’t wait for a press conference from the FED.
The liquidity wave is coming—from Shanghai and Tokyo, not Washington.
Until then, ride out the storm like a true memecoin degenerate and stay ready for the signal that starts the next big crypto run.

#MarketRebound