Crypto Retreat Deepens as Bond Pressure Builds and Liquidity Stalls

Japan’s surging bond yields forced global deleveraging, impacting crypto, gold and equities according to Ash Crypto.

U.S. political tension increased as the House vote on releasing Epstein Files added stress to already fragile risk markets.

Liquidity delays and firmer rate expectations fueled BTC’s drop below $90K, with ETF outflows adding further pressure.

Bitcoin losses extended this week as pressure from rising Japanese bond yields, unresolved liquidity constraints, and renewed political attention created a difficult backdrop for traders. Market participants tracked these developments closely because each factor influenced risk appetite across major assets

According to Ash Crypto and QCP Broadcast, several overlapping forces shaped this downturn as Bitcoin briefly moved below $90,000. Their assessments point to stressed liquidity, macro uncertainty, and a rapid repricing of expectations that affected sentiment across crypto, equities, and precious metals.

Japan’s Yield Change Reshapes Global Flows

Japan’s 10-year bond yield climbed to its highest level since the 2008 crisis, and that shift forced renewed attention on global leverage. For decades, investors relied on low-cost yen borrowing to fund positions in global assets

Notably, higher yields increased interest expenses, pushing investors to unwind positions. This unwind affected multiple markets because crowded trades faced pressure at once. According to Ash Crypto, selling extended beyond crypto as gold and equities also faced outflows linked to this adjustment.

However, the impact did not stop with yield shifts. The rotation caused traders to reassess funding exposures, which redirected attention to political developments in the United States. This created the next layer of uncertainty.

Epstein File Vote Adds Political Tension

The U.S. House scheduled a vote on the release of the Epstein Files, which added political risk to already stressed markets. Ash Crypto noted expectations that the vote would pass, and that anticipation intensified concerns

Moreover, increased political attention arrived while risk assets already processed macro pressure. This sequence pushed traders to stay cautious as liquidity conditions remained constrained.

Liquidity Crunch Extends Market Weakness

Despite the end of the U.S. government shutdown, Treasury had not released liquidity from the Treasury General Account. Ash Crypto stated that markets endured six weeks of strain, and the delay maintained pressure. Notably, funding conditions weakened as no new liquidity entered the system

This environment aligned with recent Bitcoin behavior, which historically reacted first during stressed periods. QCP Broadcast added that ETF outflows and firmer rate expectations amplified the move below $90,000, reinforcing concerns around macro sensitivity and tightening conditions.

The change in expectations also placed attention on upcoming labor and growth data, which investors viewed as key for understanding whether recent volatility reflected a short-term flush or a broader risk-off trend.

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