According to reports, Bitcoin is potentially facing a "liquidity drain" as Japan's 30-year government bond yield has risen to approximately 3.5%. This increase marks a significant shift from Japan's long-standing near-zero interest rate environment. The Bank of Japan's (BOJ) monetary policy changes, including raising its short-term policy rate to 0.75%, signal a move away from its role as a reliable supplier of cheap liquidity. This shift could impact Bitcoin through the yen funding channel, carry trade unwinds, and overall leverage reduction in global markets. The development suggests that rising yields in Japan may affect Bitcoin's behavior as a liquid, global risk asset.

According to reports, Bitcoin is potentially facing a "liquidity drain" as Japan's 30-year government bond yield has risen to approximately 3.5%. This increase marks a significant shift from Japan's long-standing near-zero interest rate environment. The Bank of Japan's (BOJ) monetary policy changes, including raising its short-term policy rate to 0.75%, signal a move away from its role as a reliable supplier of cheap liquidity. This shift could impact Bitcoin through the yen funding channel, carry trade unwinds, and overall leverage reduction in global markets. The development suggests that rising yields in Japan may affect Bitcoin's behavior as a liquid, global risk asset.