According to The Kobeissi Letter, Japanese equity funds experienced a record $11.8 billion in net outflows last week, pushing the 4-week moving average to an all-time high of $4.0 billion. This selloff is attributed to investor concerns over rising long-dated Japanese government bond yields (source: The Kobeissi Letter, June 2, 2025). For cryptocurrency traders, these large-scale equity outflows signal potential capital rotation, with increased liquidity possibly flowing into alternative assets like Bitcoin and Ethereum as investors seek higher returns and hedge against traditional market volatility.

According to The Kobeissi Letter, Japanese equity funds experienced a historic $11.8 billion in net outflows last week, pushing the 4-week moving average to an all-time high of $4.0 billion due to investor concerns over surging long-term Japanese government bond yields (source: The Kobeissi Letter, June 2, 2025). This significant capital flight is drawing the attention of cryptocurrency traders, as shifting risk sentiment and potential liquidity movements could increase demand for digital assets like Bitcoin and Ethereum. Market participants are closely monitoring whether the ongoing outflows from traditional Japanese equities will fuel increased crypto inflows, making this a key trend for crypto trading strategies.