According to The Kobeissi Letter, Japan's 30-year government bond prices have dropped by 45% since 2019, as yields surged approximately 275 basis points to near record highs since the bond's 2007 debut (source: @KobeissiLetter, June 2, 2025). This sharp decline signals significant capital outflows from traditional fixed income, potentially increasing investor interest in alternative assets like cryptocurrencies. The persistent bond market losses may drive liquidity into digital assets, especially as Japanese and global investors seek higher returns and inflation hedges amid rising yields.

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, government bond yields are rising globally, with Japan’s 30-year bond yield surging 50 basis points in 30 days to exceed 3.0% for the first time in history, and the US 30-year Treasury yield rising 30 basis points to break above 5.0% (source: The Kobeissi Letter, June 1, 2025). These rapid increases reflect growing market uncertainty and risk-off sentiment, historically triggering capital rotation from traditional bonds to alternative assets like Bitcoin and Ethereum. Traders should closely monitor the impact of rising yields on liquidity and risk appetite, as such shifts often lead to increased crypto market volatility and new trading opportunities.

According to The Kobeissi Letter, market participants anticipate potential intervention from US Treasury Secretary Bessent as the 10-year Treasury yield approaches 5%, with traditional trade deals no longer effectively lowering yields (source: The Kobeissi Letter, May 21, 2025). If the 10Y yield continues to climb, current equity market valuations could become unsustainable, creating increased volatility across risk assets, including cryptocurrencies. Crypto traders should closely monitor US Treasury actions and yield movements, as rising yields historically pressure digital assets by increasing the opportunity cost of holding non-yielding crypto positions.

According to The Kobeissi Letter, President Trump continues to face challenges as the Federal Reserve resists lowering interest rates, despite his administration's desire for a more accommodative policy. While new trade deals are being announced, bond yields remain on an upward trend, signaling ongoing market concerns about inflation and economic stability (Source: The Kobeissi Letter, May 8, 2025). For crypto traders, persistently high yields and steady Fed policy may limit fresh inflows into risk assets like Bitcoin and Ethereum, as traditional investors favor safer fixed-income returns.