- Japan’s economic crisis not only meets the classic economy from producing businesses and services, but also the banks and the crypto industry.
- Investors switch to cryptocurrencies that do not get away, but are seen as safer than other systems.
Japan slips deeper into his financial crisis, which sends shock waves through traditional and digital financial markets. Prime Minister Shigeru Ishiba warned his compatriots that his own current economic situation was worse than that of Greece 10 years ago. At that time, the Greeks suffered the climax of their financial crisis, which would have led to the state bankruptcy without guarantees by other EU countries.
The statement comes in the middle of an increase in long -term bonding, a shrinking GDP and a sale of shares, everything, everything accompanied with Increased volatility on the global cryptoma market.
The return of 40-year-old Japanese bonds has risen to the highest level in over 20 years, which reflects the growing concern of investors about the load-bearing capacity of public finances. Rising returns usually indicate that investors demand higher returns to keep government bonds, often due to fears regarding repayment or inflation. This shift in the pricing of bonds has brought the public debt of Japan, which is still one of the highest in the industrialized countries.
The Japanese economy shrank by 0.7 % in the last quarter and thus recorded minus growth for the first time in a year, which increased the unrest. The shrinkage and the deteriorating investment mood led to a decline in the Nikkei-225 index by 3.2 %on May 19. According to market observers, the economic weakening and rising returns have weakened confidence in the financial prospects of Japan.
Cryptom market reacts to uncertainty
Even if the causes of the current downturn of the crypto market are diverse, the crisis in Japan seems to contribute to a more general risk reduction. Bitcoin (BTC) fell by 3.2% to $ 103,158 after reaching $ 106,566. Ethereum (ETH) fell 4% to $ 2,409, while XRP added 5%. The overall market capitalization of cryptocurrencies has dropped by 1.16% to $ 3.26 trillion.
The time of crypto correction is remarkable. While the immediate price declines do not related to the situation in Japan, the underlying fear on the financial markets has probably influenced the short -term mood.
The crisis in Japan could lead to a long-term reassessment of Safe-Haven strategies. Since traditional instruments and long -running government bonds become more uttractive due to increasing returns, the first institutional investors are already turning to crypto systems such as Bitcoin and Ethereum. Although these Asstes are volatile, they are increasingly regarded as protection against inflation and systemic financial risks.
In the short term, however, the high volatility and geopolitical uncertainty continue to burden cryptocurrencies. Analysts indicate that the capital flows depending on the trust of investors and the regulatory developments will likely be more likely to shift from the field of digital assets as they flow into them.
Stronger geopolitical pressure
As CNF reported, the tensions between the USA and China tighten the market stress. Beijing has criticized Washington for semiconductors due to the recent changes to the export controls and claims that the United States undermined previous agreements that were made during the talks in Geneva. China has threatened retaliation if the United States does not change its policy.
These geopolitical risks and the economic tension of Japan form a complex background for traditional and digital markets. While some see the turbulence as an opportunity for alternative systems to gain ground, others warn that the current environment tend to be caution rather than courageous investments.
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