Borrowing cheaply in yen and deploying those funds into higher-risk assets abroad is becoming less attractive as Japanese yields rise.

Bitcoin’s next downturn may not begin within the crypto markets but from tightening liquidity conditions in Japan.

This is according to analyst Ted Pillows, who argues that rising Japanese bond yields could act as a potential trigger that could ripple through global markets and weigh adversely on digital assets.

Japanese Yields and Global Liquidity Pressures

Pillows wrote on X on March 30 that Japan’s long-standing low-interest-rate environment is beginning to change, and that higher long-term bond yields are putting stress on its…