According to The Kobeissi Letter, Japanese 40-year government bond yields have surged dramatically, rising from approximately 0.25% in 2018 and 1.3% two years ago to over a record 3.5% as of May 2025 (source: The Kobeissi Letter, Twitter, May 25, 2025). This sharp increase signals heightened volatility in global bond markets, which can drive risk-off sentiment and liquidity shifts impacting both traditional and crypto markets. Traders should watch for increased volatility in Bitcoin, Ethereum, and other digital assets as institutional capital reacts to rising yields and potential outflows from risk assets.