Japan suddenly withdraws "free funds", the truth behind the global market crash!
Let's face a harsh reality: for the past thirty years, the rise in global assets has relied on Japan's "free funds." Institutions borrowed zero-cost yen and exchanged it for dollars, frantically buying assets like U.S. stocks, U.S. bonds, Bitcoin, and Ethereum.
But now the situation has completely changed. Japan's long-term government bond yields have skyrocketed, with the 20-year yield surpassing 2.8% and the 40-year reaching 3.7%. This means that the cost of borrowing yen has soared, and the "free lunch" is over.
The direct consequence is a collapse in leverage. For example, Bitcoin has fallen below $86,000, and Ethereum has dropped below $2,800. This isn't just a correction; it's a chain of liquidations. Every $1 sale triggers $10 in liquidations, and algorithmic trading accelerates the bloodbath.
The key point is:
Japan's government bond yields have reached their highest level since 1999, the Federal Reserve has suddenly shifted to a hawkish stance, delaying interest rate cuts, and the market's leverage ratio is actually as high as 90%. Mainstream coins like BNB are most directly impacted by liquidity shocks.
My view is very clear: this is not the time to bottom fish; it is a liquidity crisis. The era of cheap money is over, and blindly catching falling knives poses great risks.
I suggest maintaining a light position and watching closely the movement of the yen, waiting for the leverage to clear. This is not the end of a bull market, but a bloody reshuffling; only those who survive can enter the next round.
Remember, Qi He doesn't play tricks. What you want are "understandable, money-making" essentials, and what I want is to help you avoid pitfalls and seize opportunities.
