🚨Why is crypto bleeding today?📈📊
The answer is not in the "blockchain" but in Tokyo.
-
The markets woke up to a drop wave $BTC (down 5% to levels of $85,000) and the cryptocurrencies
And the reason?
It's not bad news in the world of crypto, but the "butterfly effect" coming from Japan
-
1️⃣ The yen's comeback and interest rate hints:
According to a Bloomberg article, the Bank of Japan governor hinted at the possibility of raising interest rates in December
-
2️⃣ Bond shock:
As a result of the statements, Japanese 2-year bond yields jumped above 1% for the first time since 2008
This is not just a number
This is a radical change in the cost of money in one of the largest sources of cheap liquidity in the world
-
3️⃣ The killer correlation:
When bond yields rise and the yen strengthens, risk appetite declines (Risk-off)
Bitcoin at this stage still behaves as a highly correlated asset with global liquidity
So when Japanese bonds "sneeze," risky assets catch a cold
-
💡Conclusion:
What we see is a reminder that financial markets are intricately connected
Global liquidity is the engine and Japan is the faucet that everyone watches carefully
The current drop is not a technical glitch but a repricing of the cost of money coming from the east
The lesson for the investor:
Do not just watch the chart but lift your head to see the bigger picture as bond movements often precede the storm
❤️Follow me and I will follow you❤️
