According to The Kobeissi Letter, yields on Japan's 40-year government bonds have surged from approximately 0.25% in 2018 and 1.3% two years ago to over 3.5% as of May 2025, marking a historic high (source: The Kobeissi Letter on Twitter, May 25, 2025). This rapid increase in long-term Japanese yields signals significant shifts in global risk appetite and liquidity. For crypto traders, this could mean increased volatility as global investors may reallocate capital from risk assets like cryptocurrencies to higher-yielding government bonds. Additionally, rising Japanese yields could strengthen the yen, potentially impacting Bitcoin and altcoin trading pairs against JPY and global fiat currencies.

According to The Kobeissi Letter, Japan's real GDP contracted by -0.7% in Q1 2025, significantly worse than the expected -0.3%, marking the first decline since Q1 2024. The contraction is attributed to the combined effects of new tariffs and rising yields, signaling further macroeconomic weakness ahead. For crypto traders, this economic downturn in Japan may contribute to increased volatility in the yen and affect global risk appetite, potentially influencing Bitcoin and digital asset flows as investors seek safe havens or adjust exposure to Asia-Pacific markets (source: The Kobeissi Letter, May 25, 2025).

According to Stock Talk (@stocktalkweekly), the United States will cut tariffs on Chinese goods to 30% from 145%, while China will reduce tariffs on U.S. goods to 10% from 125% for an initial 90-day period as trade negotiations progress. This significant easing of trade tensions is expected to boost global risk appetite, supporting both U.S. and Chinese stock markets. For crypto traders, the improved macroeconomic environment and reduced geopolitical uncertainty may trigger increased capital flows into digital assets like Bitcoin and Ethereum, as investors seek higher yields amid renewed optimism. Source: Stock Talk (@stocktalkweekly), May 12, 2025.