Oh, the drama never ends. After a brief flirtation with $93,000 last week, Bitcoin, the darling of the digital world, has fallen back to its old haunt of $85,000. A steep 7% plunge on Monday, according to CoinGecko. The price of fame, huh?
Enter the hero of this rollercoaster ride: Japanese government bonds. Yes, you heard that right, bonds. Market expert Shanaka Anslem has waved his sword at what he calls “the weapon” behind this latest fiasco. And if you think he’s kidding, think again.
Brace Yourself for the Yen Carry Trade Apocalypse
According to the sage Anslem, Japan’s 10-year bond yield just hit 1.877% on December 1, 2025. The highest since 2008, the year of financial fire and brimstone. The 2-year yield? A full 1%, the kind of number that used to signal doom after Lehman Brothers took a dive. So, naturally, the Yen Carry Trade-the largest arbitrage trade in history, worth up to $3.4 trillion-has decided to leave the building.
Why? Oh, just the small matter of rising yields. As the yen strengthens, those sweet, leveraged positions start to feel a lot less sweet. And when leveraged positions start to crumble, well, let’s just say things get liquidated. Fast. On October 10th, we saw $19 billion worth of crypto positions wiped off the map. And that’s just the beginning, folks.
By November, Bitcoin ETFs saw a dramatic exit of $3.45 billion, with BlackRock’s IBIT taking the lion’s share of the loss-a cool $2.34 billion. And December 1st? Oh, just a casual $646 million gone before lunch. Talk about a bad day at the office.
Is Bitcoin Heading For $75,000? Oh, Joy.
As Bitcoin continues its downward spiral, it’s now showing a 46% correlation with the Nasdaq and 42% with the S&P 500. Once a “hedge” against market madness, Bitcoin is now playing along with the stock market’s every whim. Who would’ve guessed?
But don’t worry! Despite all this, some optimistic whale investors have been busy snatching up 375,000 BTC during this bloodbath. Miners, too, have gotten shy, slashing their sales from 23,000 BTC to just 3,672. Who’s the big winner here? Oh, it’s not the average trader, I can tell you that much.
But wait, there’s more! December 18th could be the moment of truth. The Bank of Japan’s policy decision looms large. If they raise rates? Buckle up. Bitcoin could be testing the $75,000 mark, bringing the total drop to a tragic 11%. Stay tuned, folks. This saga is far from over.
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2025-12-02 11:18