Y’all ain’t ready for this! Welcome to the US Crypto News Morning Briefing-where the crypto world’s as chaotic as a circus with a drunk elephant.
Grab a coffee, for the global markets are stirrin’ like a pot of hot soup, with Japan’s bond yields climbin’ and the BoJ whisperin’ of a rate hike. The decades-long yen carry trade, which fueled stocks, crypto, and risk assets, could be unravelin’ faster than a poorly tied shoelace. 🚨
Crypto News of the Day: Bitcoin Braces as BoJ May End Decades of Cheap Money
Global markets are bracin’ for a macro shock as the Bank of Japan (BoJ) prepares for its December 18-19 monetary policy meetin’. It’s like watchin’ a trainwreck in slow motion, but with more spreadsheets and fewer explosions. 💸
Traders now price a 90% chance of a 25 basis point rate hike, followin’ signals from BoJ Governor Kazuo Ueda and persistent inflation above 2%. It’s the financial equivalent of a hangover that won’t quit. 🍻
Japan’s 2-year government bond yield has climbed above 1%, its highest since the 2008 Global Financial Crisis, while the 10-year JGB hit a 17-year high. Talk about a return to the “good old days”! 🕰️
Why the Yen Carry Trade Matters
For nearly three decades, the yen carry trade fueled global risk-takin’. Investors borrowed yen at ultra-low rates, converted it to dollars, and deployed capital into higher-yieldin’ assets, includin’ US stocks, bonds, and cryptocurrencies like Bitcoin. It’s like a Ponzi scheme with better PR. 🤝
When Japan raises rates or the yen strengthens, this trade unwinds violently, forcin’ rapid asset sales. It’s the financial version of a house of cards-only the cards are made of debt and the wind is blowin’ hard. 🌬️
The consequences are not hypothetical: in August 2024, a BoJ hike triggered a $600 billion crypto market wipe, includin’ Bitcoin fallin’ to $49,000 and $1.14 billion in liquidations. Analysts warn that a similar scenario could repeat if Japanese yields rise further. It’s like watchin’ a horror movie with a sequel you didn’t ask for. 🎬
🚨 The BOJ is about to shake crypto markets
🇯🇵Japan’s likely rate hike to 80% Dec 18-19 – this threatens the yen carry trade that’s been funding $BTC & risk assets for years
Last time they hiked was Aug 2024.🔥BTC crashed to $49K
$600B wiped from crypto
$1.14B in liquidations…– PaulBarron (@paulbarron) December 5, 2025
Besides Paul Barron, analyst Great Martis also calls the BoJ hike a potential “canary in the coal mine” for crypto and global markets. It’s like havin’ a canary that’s more anxious than your ex. 🐦
“When the reckless BOJ is forced to raise rates, the yen carry trade will begin to unwind, causin’ market turmoil. Canary in the coal mine,” Martis wrote in a post.
Meanwhile, early signs of stress are emergin’, as hedge funds and institutional investors closely monitor the simultaneous tightening of liquidity in Japan, the US, and China. This rare convergence could accelerate deleveragin’. It’s like watchin’ three jugglers drop balls at once. 🎾
Nonetheless, counterpoints exist. Analyst Negentropic notes that most leverage has already been flushed since October. In the same tone, Bob Elliot argues the yen carry trade is largely muted. It’s like a debate between two people who both agree the sky is blue but argue about the shade. 🌤️
The Yen Carry Trade Is Dead
Despite a falling FX and low rates, the yen carry trade remains muted. Naked FX borrowin’ ended with the GFC, with the only thing left a lingerin’ nostalgia for a trade that mattered 20yrs ago.
– Bob Elliott (@BobEUnlimited) December 2, 2025
Yet even modest unwindin’ could pressure highly leveraged crypto positions and risk assets globally. It’s like a tiny pebble in a pond-ripples everywhere. 🌊
If QE Is Not the Immediate Solution, What’s Next for Bitcoin and Global Risk Assets?
Nic Puckrin, co-founder of Coin Bureau, emphasizes that quantitative easing (QE) historically follows a crisis, not routine rate adjustments. It’s like a doctor who only shows up after you’re already dead. 🩺
The current tightening in Japan, the US, and China suggests that markets may face further drawdowns before any liquidity support arrives. Investors bettin’ on easy money could face sharper-than-expected volatility. It’s like playin’ poker with a deck of cards that’s been stacked against you. 🃏
Crypto markets are often the first to absorb funding shocks, makin’ Bitcoin and Ethereum bellwethers for liquidity stress. It’s like havin’ a canary in a coal mine that’s already been poisoned. 🐦⬛
With the BoJ’s rate decision loomin’, traders should monitor:
- JGB yields,
- USD/JPY levels, and
- Leveraged positions.
If Japan continues tightenin’, global deleveragin’ could persist into 2026, testin’ the resilience of both crypto and traditional markets. It’s like a marathon where the finish line keeps movin’. 🏃♂️
The era of free Japanese money appears to be comin’ to an end. Markets now face a higher-volatility environment, where fundamental value may replace cheap leverage as the main driver of asset prices. It’s like switchin’ from a carnival ride to a rollercoaster. 🎢
Chart of the Day
Byte-Sized Alpha
Crypto Equities Pre-Market Overview
| Company | ||
| Strategy (MSTR) | $186.01 | $184.62 (-0.75%) |
| Coinbase (COIN) | $274.05 | $273.30 (-0.27%) |
| Galaxy Digital Holdings (GLXY) | $27.57 | $27.73 (+0.58%) |
| MARA Holdings (MARA) | $12.44 | $12.37 (-0.57%) |
| Riot Platforms (RIOT) | $15.59 | $15.57 (-0.13%) |
| Core Scientific (CORZ) | $17.08 | $17.09 (+0.059%) |
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2025-12-05 20:35