Japan’s Debt Crisis Triggers Global Market Tremors, Crypto Impact Feared
Japan’s sovereign debt crisis has escalated into a systemic threat, with 30-year bond yields spiking to 3.2% and 40-year bonds collapsing—wiping out $500 billion in market value. The Bank of Japan’s abrupt retreat from quantitative easing has created the worst liquidity squeeze since 2008, exposing structural vulnerabilities in the world’s third-largest economy.
With debt exceeding 260% of GDP and inflation hitting 3.6%, capital flight risks intensifying. Market analysts observe disturbing parallels to the European debt crisis, noting Japan’s status as the global carry trade linchpin means contagion could spread rapidly to risk assets—including cryptocurrencies.