According to The Kobeissi Letter, the Bank of Japan reduced its bond holdings by a record 6.2 trillion Yen in Q1 2025, marking the largest quarterly decline ever reported. Over the last five quarters, the BoJ's total bond holdings have fallen by 14.2 trillion Yen. This accelerated quantitative tightening signals a significant shift in Japanese monetary policy, increasing market volatility and risk-off sentiment, which could drive global capital flows into alternative assets such as Bitcoin (BTC) and Ethereum (ETH). Crypto traders should closely monitor the BoJ's actions, as further balance sheet reductions may impact liquidity and currency valuations, potentially fueling demand for decentralized assets. (Source: The Kobeissi Letter, June 18, 2025)