2026-01-20 05:21:02

#数字资产市场动态 The sudden plunge behind this could be due to this — Japan's 20-year government bond yield suddenly surged, jumping 14 basis points from its previous level, now standing at 3.395%.

A chain reaction quickly followed. The cost of borrowing in yen sharply increased, and many investors betting on yen arbitrage started to panic, rushing to close positions and convert back to yen to repay debts. High-risk assets like Bitcoin were hit hardest, with sell-offs intensifying. The short-term selling pressure was quite significant, which is why we saw today's decline.

The deeper logic is that global liquidity is tightening. The attractiveness of domestic Japanese assets has suddenly increased, and Japanese funds that were previously invested overseas are starting to flow back. Think about it — when the yields on safe assets start to rise, who still cares about those highly volatile cryptocurrencies? As risk aversion shifts, some funds are directly withdrawing from the crypto market and flowing into traditional fixed-income markets.

To be honest, last year, the overall gains in cryptocurrencies didn't even surpass gold, which already shows that the enthusiasm of risk-averse funds for crypto has diminished compared to previous years. The shift in risk appetite may not be favorable in the short term, but from a longer cycle perspective, a rebound is still likely.

BTC0,71%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
7
Repost
Share

Comment

0/400

Layer3Dreamer

· 9h ago

theoretically speaking, if we map this liquidity flow as a cross-rollup state verification problem... the yield curve just executed a recursive unwind that's cascading through every risk asset. brutal but mathematically inevitable given the BoJ's new attractiveness vector.

Reply0

MEVictim

· 11h ago

Japanese people causing trouble again, funds are flowing back, we have to take the hit. --- Yen arbitrage liquidation, well, this is good. --- Wait, so Japanese government bonds at 3.4% can just suck blood? That's a bit outrageous. --- Here we go again, safe-haven, safe-haven, really treating crypto as a risk asset. --- Long-term rebound? Bro, how many times have you said that. --- The return of funds should have been anticipated long ago, who to blame? --- It's only 3.395%, is it really necessary to dump the market? --- Alright, just keep lying flat and wait for the rebound. --- Global liquidity tightening is like this, crypto is always the scapegoat. --- Can't even keep up with gold, what does that mean?

View OriginalReply0

HappyMinerUncle

· 01-20 05:51

Japanese government bonds get into trouble, and our crypto circle has to take the hit, it's really unbelievable --- Here we go again, every time it's the same routine, the play of closing yen arbitrage positions and smashing the market --- The signs of liquidity tightening have been evident for a while, but I didn't expect it to come so quickly --- Basically, it's still risk aversion sentiment; safe assets are like a mother's milk --- Don't panic, those who hold long-term are already used to it; this dip might actually be an opportunity --- Japan is the same, insisting on pushing up government bond yields --- This year, cryptocurrencies still haven't beaten gold, it's indeed a bit awkward --- Whenever global liquidity tightens a bit, we get caught in the crossfire, I really can't believe it

View OriginalReply0

rekt_but_vibing

· 01-20 05:50

When Japanese government bonds fluctuate, global funds follow suit. This trick has been played out already.

View OriginalReply0

EternalMiner

· 01-20 05:48

Japanese government bond yields surge, yen arbitrage positions are closed out, and Bitcoin is hit the hardest. It's the same old script of liquidity tightening, with funds flowing back into safe assets, causing cryptocurrencies to suffer first. The short-term volatility is fierce, but this wave actually builds up strength; the harder it falls, the more vigorous the rebound. It all depends on who can hold on.

View OriginalReply0

DegenWhisperer

· 01-20 05:46

Once Japan's government bonds are affected, global arbitrage positions are all cut off. There's really no way to handle this wave.

View OriginalReply0

BrokenYield