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).