According to CryptoSlate, Bitcoin could face a "liquidity drain" as Japan's 30-year government bond yield has risen to roughly 3.5%. Japan's monetary shift scrutinizes yen's role in crypto trades, hinting at broader market challenges. The Bank of Japan (BOJ) has moved its short-term policy rate up to 0.75%, signaling it could keep tightening if the economy and prices track their forecasts. Japan’s monetary base fell 4.9% year on year in 2025, with December down 9.8% to about ¥594.19 trillion, the first dip below ¥600 trillion since 2020. Japan is exiting an era of cheap funding and abundant central bank liquidity, impacting Bitcoin as it is wired into the same global risk system.

According to CryptoSlate, Bitcoin could face a "liquidity drain" as Japan's 30-year government bond yield has risen to roughly 3.5%. Japan's monetary shift scrutinizes yen's role in crypto trades, hinting at broader market challenges. The Bank of Japan (BOJ) has moved its short-term policy rate up to 0.75%, signaling it could keep tightening if the economy and prices track their forecasts. Japan’s monetary base fell 4.9% year on year in 2025, with December down 9.8% to about ¥594.19 trillion, the first dip below ¥600 trillion since 2020. Japan is exiting an era of cheap funding and abundant central bank liquidity, impacting Bitcoin as it is wired into the same global risk system.