According to The Kobeissi Letter, the collapse of the Yen carry trade in August 2024 led to the Japanese stock market's largest single-day loss since 1987, highlighting Japan's deep integration with global financial markets (source: @KobeissiLetter on Twitter, May 25, 2025). This event triggered a significant risk-off sentiment among global investors, prompting capital flows out of equities and into safe-haven assets including certain cryptocurrencies like Bitcoin and stablecoins. For crypto traders, monitoring Japanese monetary policy and yen volatility is now critical, as further instability could drive additional capital flight and affect crypto price dynamics through increased demand for decentralized assets.