💥 $5K$ #Bitcoin Crash: Is the Japanese Yen Flipping the 'Risk-Off' Switch?

Bitcoin suffered a shocking $\$5,000$ drop at the start of the week, plummeting from $\$91\text{k}$ to $\$86\text{k}$ during the Asian session open. This sudden decline coincides with a critical surge in long-term government bond yields, particularly the 20-year Japanese Government Bond (JGB).

Traditionally, the Japanese #Yen (JPY) and Swiss #Franc (CHF) act as reserve safe-haven currencies, alongside the #USD in times of market stress.1 A significant rise in long-term bond yields signals a major 'Risk-Off' shift. When this switch is flipped, investors quickly sell off riskier assets, like Bitcoin, to return to these stable, safe-haven currencies.

#JGB yields are now climbing back towards levels last seen during the Dot-com bubble in 2000. While Bitcoin has corrected, stocks remain near peak highs. The market's reaction suggests the 'Risk-Off' cycle has only just begun.

Given the sharp rebound since the low, chasing a buy here is precarious. The path of least resistance appears to be toward shorting, as market dynamics favor safe havens over risky assets in the near term.