Correlation between crypto trends and Japanese government bond yields

Let's look at two charts: the first is the 10-year Japanese Government Bond (JGB) yield, and the second is ETH

The sudden changes all started exactly at 8 AM Tokyo Monday trading opening. The 10-year JGB yield surged to a new cycle high (around 1.8-1.85%, the highest level since 2008), while ETH dropped from 3k to 2.8k lows

Rising JGB yields + stronger yen = classic "yen carry trade unwinding" and global risk aversion. So the background story is:

Higher JGB yields make yen borrowing more expensive

-> Yen carry trades get unwound

-> Funds reduce risk, first selling the most liquid risky assets (BTC and ETH)

-> Leverage gets hit, derivatives open interest resets

This looks more like a macro liquidity shock rather than a crypto fundamentals issue. Historically, such Japanese yield/yen shocks tend to bottom within 2-5 days

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