#数字资产市场动态 Sudden sharp decline might be caused by this — the 20-year Japanese government bond yield soared all at once, jumping 14 basis points from the previous level, now standing at 3.395%.

The chain reaction happened quickly. The cost of borrowing in yen suddenly increased, and many investors betting on yen arbitrage started to panic, needing to close positions quickly and convert back to yen to repay debts. High-risk assets like Bitcoin were hit hardest, being sold off in a rush. The short-term selling pressure was quite strong, which is why we saw today's decline.

Deeper logic points to the global liquidity tightening. The attractiveness of domestic Japanese assets suddenly increased, and Japanese funds that were invested overseas began to flow back. Think about it — when the yields on safe assets start to rise, who still cares about 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's overall crypto gains didn't even catch up with gold, which already shows that risk-averse capital's enthusiasm for crypto has waned compared to previous years. The shift in risk appetite might not be favorable in the short term, but from a longer cycle perspective, the rebound will still happen.