A rapid unwind of yen-funded trades could trigger forced selling across markets, including cryptocurrencies.

Bitcoin’s reaction to the Bank of Japan’s latest policy decision may look calm on the surface, but one analyst believes a much bigger liquidity risk is building beneath global markets.

His warning came after the BOJ left its benchmark interest rate unchanged at 1% on July 31.

Japan’s Bond Market Dilemma Could Spill into Crypto

According to EGRAG CRYPTO, Japan’s financial system has run for more than three decades on the assumption that money would stay almost free. That assumption formed after the Nikkei peaked near the end of 1989, and policymakers spent…