According to The Kobeissi Letter, Japan's economy contracted by -0.7% in Q1 2025, marking the first decline in a year and more than doubling economists' expectations (source: The Kobeissi Letter, May 16, 2025). This GDP data does not factor in the reciprocal tariffs imposed on April 2, suggesting further downside risk. Traders should monitor heightened volatility in the Japanese yen and Nikkei index, as recession fears could spill over into the global cryptocurrency market, particularly impacting Bitcoin and stablecoin trading pairs due to risk-off sentiment and capital flows (source: The Kobeissi Letter).