As Japan increases interest rates, assets are selling off globally, to cover their hitherto low-to-no interest loans denominated in Japanese Yen. Hard to fathom the billions that have been made by international investors, on the backs of the people of Japan, suffering through currency debasement for decades. Wishing them a speedy economic recovery.
SINGAPORE, Dec 2 (Reuters) - Stocks made muted gains and traders were wary on Tuesday, following a slide in cryptocurrencies and a global bond selloff triggered by a looming interest rate hike in Japan. ... Bitcoin , which has been a talisman for sentiment, bounced higher after an unsettling 5.2% slump on Monday and at $87,000 is down 30% from an October peak...Expectations that Japan will hike interest rates later this month had surged on Monday when Bank of Japan Governor Kazuo Ueda laid the groundwork for tightening policy.Ten-year JGB yields shot six bps higher, and perhaps on the view that could lure home some of Japan's vast international investments, traders sold global bonds and pushed ten-year Treasury yields up 7.7 bps to 4.096%. ... The yen caught a boost and has stood firmest in foreign exchange markets over the past 24 hours, holding at 155.64 per dollar on Tuesday. ... Some investors, however, are starting to expect a more durable turn lower for the greenback as the U.S. prepares to cut interest rates further and faster than many peers.
Meanwhile, Bitcoin whales have been taking advantage of the sale prices:
On-chain analytics show large Bitcoin addresses stockpiling coins. CryptoQuant data reveals that long-term non-exchange holders exploded in number and volume. These addresses doubled to 262,000 in two months and collectively bought over 375,000 BTC in the past 30 days. Analysts at BeInCrypto note that wallets holding 1,000-10,000 BTC boosted their balance by about 29,600 BTC in just one week. ... Whale buying often precedes bullish runs. When whales accumulate, it typically tightens supply on exchanges and creates a support floor under the price...Analysts interpreting current trends say this whale activity signals buying opportunity, not crash warning. One BeInCrypto report explains that despite headlines about ETF outflows and retail panic, "institutional players are quietly reloading," which is strengthening Bitcoin's support zone around $100,000.