Japan's bonds hit a historic high, impacting global Arbitrage, while the encryption leveraged investment portfolio faces a Liquidity crisis.

2025-12-21 06:40:08

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[Coin World] Japan's long-term government bond yields are rising steadily, with the 30-year bond reaching a historical high of 3.42%. This wave of market activity directly impacts global yen arbitrage trading—the previously low-interest yen is now being borrowed in large amounts to invest in high-yield assets, and the costs are rapidly increasing.

What is a chain reaction? Global investors are beginning to withdraw from high-risk varieties, with leveraged investment portfolios, including cryptocurrencies, being the hardest hit. Once financing costs rise, the appeal of borrowing money to trade coins significantly diminishes, leading to a shrinkage in speculative demand. Coupled with the shrinking global liquidity environment, increased market volatility is almost inevitable—it's not just the crypto space; the entire financial market is feeling this chill.

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SelfCustodyIssues

· 2025-12-23 18:58

When the yen arbitrage collapses, retail investors will have to take the hit. This time, we really need to see whose leverage is the weakest.

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SignatureDenied

· 2025-12-22 20:26

With the explosion of yen arbitrage, the leveraged traders were directly liquidated, and now the crypto world is doomed. --- It's the same old story, borrowing cheap money to invest in high returns, but now that costs have risen, everything must be paid back. --- The shrinkage of liquidity is truly frightening; even encryption can't escape it. --- It was bound to happen; let the bubble burst. --- So is this wave about big institutions playing people for suckers? Or is it really a systemic risk? --- Japan's national debt at 3.42%, my goodness, this interest rate is really outrageous. --- Borrowing money to trade coins is essentially a gambler's game, and now that costs have risen, the true nature is immediately revealed.

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NFTFreezer

· 2025-12-22 07:28

The yen arbitrage has collapsed, and the leveraged traders have to rug pull now, this is getting interesting. --- Another good time for being played for suckers has come, the guys borrowing money to trade coins are really in trouble this time. --- Wait, Japanese government bonds at 3.42%? Who can bear this cost, how can the crypto world’s leverage survive? --- Liquidity shrinking is the end of the matter, everyone has to cut positions, it's really hard when no one is catching a falling knife. --- Now it's good, the global finance has caught a cold, and the crypto world is the first to suffer, my portfolio needs to be adjusted. --- The yen arbitrage has collapsed, high-risk assets should run when they need to, otherwise it will be a total loss. --- Financing costs have exploded, and the model of borrowing money to trade coins is completely unplayable now. --- The entire financial market is cooling down, and the crypto world can't bear this little bit of heat at all.

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NonFungibleDegen

· 2025-12-21 07:08

ngl this is actually the part where the music stops and we all realize we were dancing on borrowed yen... ser we're cooked

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GmGnSleeper

· 2025-12-21 06:58

The yen arbitrage got liquidated, and the days of borrowing money for Cryptocurrency Trading are coming to an end.

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consensus_whisperer

· 2025-12-21 06:57

When the yen arbitrage collapses, the leveraged traders have to rug pull, and now the crypto world is going to be left out in the cold.

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RetiredMiner

· 2025-12-21 06:54

The recent interest rate hike in yen is directly lethal... Those who relied on yen arbitrage to leverage must be in a panic now.

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TestnetFreeloader

· 2025-12-21 06:48

With the interest rate hike in the yen, the leveraged traders should start to close all positions now, this is going to be interesting.

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IfIWereOnChain

· 2025-12-21 06:40

Yen arbitrage explosion, this wave is indeed hurting Another Cut Loss is needed, with financing costs rising who would dare to leverage Wait, does this mean the era of borrowing money to trade cryptocurrencies might really be over? I just want to know when low-interest arbitrage can recover losses... Liquidity crisis in the crypto world, is it true or false, it feels like it's being shouted every month

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