Similar situations occurred in 2022–2023 and again at the beginning of 2025, when rising yields on Japanese government bonds led to the unwinding of carry‑trade transactions, the rise in U.S. Treasury yields, and short‑term volatility in equity and digital asset markets due to higher financing costs and cross‑border position adjustments.
Higher domestic yields in Japan may gradually draw some institutional capital back to local fixed‑income markets, especially if global volatility remains high. In the near term, this could tighten liquidity conditions in equity, technology, and cryptocurrency markets.
In the case of digital assets, this confirms a broader structural trend in which bond markets are becoming increasingly important drivers of cryptocurrency price changes, alongside ETF fund flows and institutional investor positioning. BTC and ETH prices are no longer shaped solely by crypto‑specific factors but respond more directly to the same liquidity, interest‑rate, and macroeconomic signals that determine global financial market behavior.
Ryan Lee, Head of Bitget Research
