According to @BullTheoryio, Japan is considering a 17 trillion yen approximately 110 billion dollars fiscal stimulus with cash support, tax relief and sector incentives, which has historically weakened the yen and pushed capital into higher return global risk assets, with Bitcoin BTC often leading the reaction because it prices liquidity faster than equities. Source: @BullTheoryio. According to @BullTheoryio, the United States backdrop is turning more liquidity friendly with the shutdown resolved, the Treasury General Account near 960 billion dollars and JPMorgan expecting about 300 billion dollars to flow out of the TGA over the next four weeks, while quantitative tightening is slowing and expected to end on December 1. Source: @BullTheoryio citing JPMorgan. According to @BullTheoryio, China is injecting over 1 trillion yuan per week into the economy, reinforcing a global shift toward easier liquidity compared with Q4 2021. Source: @BullTheoryio. According to @BullTheoryio, these cross market liquidity drivers suggest the latest BTC pullback looks like a bear trap before a potential next move, with risk assets positioned to benefit first from the easing impulse. Source: @BullTheoryio.

According to The Kobeissi Letter, Japan's real wages fell sharply by 2.1% year-over-year last month, marking the largest decline in over two years (source: @KobeissiLetter, May 25, 2025). With inflation rebounding and wage growth lagging, the Bank of Japan is unlikely to raise interest rates in this environment. This scenario may further weaken the Japanese yen, potentially driving increased interest from Japanese investors in cryptocurrencies as an inflation hedge and alternative asset class. Crypto traders should monitor yen movements and BOJ policy signals, as sustained currency weakness could spur capital flows into Bitcoin and other digital assets.

According to The Kobeissi Letter, Japan's 30-year government bond yield has surged to a historic high of 3.15%, signaling significant turmoil in the Japanese bond market (source: @KobeissiLetter, May 20, 2025). This unprecedented yield spike reflects mounting inflation and a shift in policy outlook, which could prompt global risk-off sentiment and capital flows into alternative assets such as cryptocurrencies. Traders should closely monitor yen weakness and potential liquidity shifts, as these factors may drive increased volatility and trading opportunities in both crypto and global markets.