Japanese government bond yields have surged to their highest level in decades, hitting 1.86%, the highest since 2008. This shift could impact the crypto market, as Japan’s low-interest rate environment encouraged the Yen Carry Trade, where investors borrowed yen to buy riskier assets. The rise in yields may lead to a flight to safety, affecting crypto markets. Japan holds $1.1 trillion in US Treasury securities, posing challenges for the US as it faces record deficits and the end of quantitative tightening. Analysts warn of a possible flight to safety, which could result in a sell-off of risk assets, impacting the crypto market.

Read more at CoinTelegraph: Japan Bond Yields Surge, Threatening Crypto Market Liquidity