According to The Kobeissi Letter, the Bank of Japan reported record unrealized losses of $198 billion from government bonds in Fiscal Year 2024, a threefold increase from the prior year's $66 billion. This surge in losses coincides with Japan's 10-year yield doubling to approximately 1.5% by March 2025. The sharp rise in yields reflects tightening monetary conditions and has heightened concerns about global liquidity, directly influencing risk appetite in the cryptocurrency market and fueling increased volatility in Bitcoin and altcoins as investors reassess safe-haven strategies (Source: The Kobeissi Letter, June 1, 2025).

According to The Kobeissi Letter, the Bank of Japan reported a record $198 billion in unrealized losses from government bonds for Fiscal Year 2024, tripling last year's figure of approximately $66 billion as Japan’s 10-year yield surged to 1.5% by March end (Source: The Kobeissi Letter, June 1, 2025). This substantial increase in paper losses is driving heightened volatility in the yen, prompting crypto traders to monitor USDJPY movements closely for possible arbitrage and risk-off flows into digital assets. Bitcoin and stablecoins may see increased demand as investors seek alternatives amid concerns over Japan’s fiscal stability.