Japan’s Yield Spike Triggers $1B Crypto Liquidation Storm
Global crypto markets bled $1 billion in liquidations as Japan's bond market quake reverberated across risk assets. Bitcoin cratered 7.2% to $86,904 while ethereum plunged below $2,817 - their worst single-day drops since March's banking crisis.
The trigger? Japan's 10-year yield surged 25bps after policymakers signaled structural monetary tightening, forcing carry trade unwinds. 'When the world's last bastion of negative rates falls, everything gets repriced,' said Galaxy Digital's Jason Urban.
XRP led altcoin losses with a 12% collapse to $1.99 as Solana and Cardano mirrored the rout. Derivatives data shows Leveraged longs got obliterated - Binance and Bybit alone saw $420 million in BTC contract liquidations.
The yen's violent rebound sparked margin calls across Tokyo's crypto whales. Nomura analysts note 60% of Japan's retail crypto positions were yen-denominated, creating a feedback loop of forced selling.
