Don’t be so quick to blame last night’s crash on domestic factors—the real culprit is in Tokyo!

Bitcoin plunged straight from $90,000 to below $83,000—who can withstand that? Rumors are flying online that 13 domestic departments held a joint meeting to crack down on virtual currency trading, causing widespread panic. Wake up, everyone—this gets talked about every year, every quarter. Over all these years, the price still rises when it should, and there’s never been a real crash.

The real bombshell was quietly dropped in Japan—their 10-year government bond yield shot straight up to 1.8%! Since the 2008 financial crisis, we haven’t seen numbers this high, leaving the market stunned.

Let’s start from the beginning. For over a decade, the Bank of Japan has acted like a charity, lending money at almost zero interest. Global capital smelled opportunity, borrowing yen like crazy to swap for dollars: buying US Treasuries for yield, bottom-fishing Nvidia to catch the AI boom, and picking up some Bitcoin as petty cash. This yen carry trade was a money printer, and the crypto world benefited as capital poured in. The whole market was propped up by this leverage—rock solid.

Now, everything’s changed! Domestic inflation in Japan is out of control, and people are complaining about high prices. The central bank can’t hold on—they have to raise rates. The market is betting that on December 19, they’ll hike from 0.5% to 0.75%. The cost of borrowing is soaring, and the yen’s exchange rate has reversed, climbing from 150 to over 140 per US dollar. The big institutions are panicking, dumping US stocks, selling Treasuries, tossing gold, scrambling for cash to pay back debts.

Why did Bitcoin get hit the hardest? Because it’s super liquid! It trades 24/7, so it’s the top target when people need to sell fast. This isn’t some technical breakdown—the era of free global lunches is over. As soon as the liquidity pump shuts off, all assets shrink together.

Some say the Fed will cut rates on December 10 to save the market? Come on, that’s like putting a band-aid on a leg wound—might help a bit. But Japan is pulling the oxygen tube! Even if the Fed cuts by 25 basis points, the dollar weakens, the yen strengthens, and the carry trade gets squeezed even tighter—the crash will only accelerate.

Don’t even think about trying to buy the dip in the short term! Institutions have already pulled out to save themselves—if retail investors rush in now, they’re just catching falling knives. Stay calm, and wait until the dust settles.