According to The Kobeissi Letter, Japan's Debt-to-GDP ratio has exceeded 260% for the first time, making it roughly double that of the United States and ranking among the top five globally. Last week, Prime Minister Kishida warned that Japan's financial situation is now 'worse than Greece.' This historic debt level signals heightened economic risk and may trigger volatility in global fiat currencies, particularly the Japanese yen, which could drive increased interest in Bitcoin and stablecoins as alternative stores of value and hedges against currency devaluation. Crypto traders should monitor yen volatility and capital flows into digital assets as risk-averse investors seek diversification amid Japan's fiscal uncertainty. (Source: The Kobeissi Letter, May 25, 2025)

According to The Kobeissi Letter, Japan's 40-year government bond yield surged to its highest level in over 20 years, coinciding with fresh GDP contraction and alarming warnings from Prime Minister Ishiba, who described the situation as 'worse than Greece' (source: The Kobeissi Letter, Twitter, May 19, 2025). For crypto traders, this signals potential volatility in yen-pegged stablecoins and cross-border flows, as risk aversion rises in Asian markets. The escalating bond yields and economic downturn increase the likelihood of liquidity shifts into crypto assets as traders seek alternative stores of value and hedge against fiat instability.