According to The Kobeissi Letter, the Bank of Japan now owns 52% of all domestic government bonds, significantly outpacing life insurers (13.4%), banks (9.8%), and pension funds (8.9%). Bloomberg reports that the Japanese government holds $7.8 trillion in debt. For crypto traders, this central bank dominance signals ongoing yen liquidity and potential devaluation risks, which may drive increased interest in Bitcoin and stablecoins as alternative stores of value and hedges against currency depreciation. Market participants should monitor BOJ policy shifts closely, as changes could trigger volatility in both traditional and crypto markets. (Source: The Kobeissi Letter, Bloomberg)

According to financial analysts, the global debt surpassing $300 trillion might lead central banks to engage in quantitative easing (QE), potentially sparking a cryptocurrency bull run. Analysts suggest monitoring policy changes as central banks may print more currency to devalue debt, which historically has created bullish conditions for digital assets like Bitcoin and Ethereum.

According to The Kobeissi Letter, global debt increased by approximately $7 trillion in 2024, reaching a record $318 trillion. Emerging markets, particularly China, India, Saudi Arabia, and Turkey, were responsible for about 65% of this growth. Over the past 2.5 years, global debt has surged by around $30 trillion, highlighting significant financial expansion in these regions.