Trump hit Japan from behind.
After PM Takaichi’s Taiwan remarks in November 2025, China halted Japanese seafood imports and warned against travel. From January 2026 it tightened rare-earth and dual-use exports. Terbium and dysprosium had already stopped. That is pressure on manufacturing.
The yen fell to 162–164 in mid-2026. Japan spent about ¥11.7 trillion in May, then a record ¥15.4 trillion ($98.6 billion) from July 30 to August 26, partly with the US. The cash came from selling Treasuries. Holdings fell about $51.5 billion in a year, and about $135 billion from the February peak through July.
Washington did not step in to save the yen. Japan is the largest foreign holder of US debt. More selling pushes US long-term yields up. The joint intervention came with a demand for fiscal tightening. China squeezes real supply. The US put conditions on the ammunition.
The loop: Japan defends the yen → sells Treasuries → US long-term rates rise → liquidity leaves risk assets. Higher yields mean a higher discount rate. While China keeps squeezing and the yen needs defending, that is gravity for Bitcoin and stocks.
#Macro #BTC #CryptoNews #BinanceSquare #Liquidity #Yields
After PM Takaichi’s Taiwan remarks in November 2025, China halted Japanese seafood imports and warned against travel. From January 2026 it tightened rare-earth and dual-use exports. Terbium and dysprosium had already stopped. That is pressure on manufacturing.
The yen fell to 162–164 in mid-2026. Japan spent about ¥11.7 trillion in May, then a record ¥15.4 trillion ($98.6 billion) from July 30 to August 26, partly with the US. The cash came from selling Treasuries. Holdings fell about $51.5 billion in a year, and about $135 billion from the February peak through July.
Washington did not step in to save the yen. Japan is the largest foreign holder of US debt. More selling pushes US long-term yields up. The joint intervention came with a demand for fiscal tightening. China squeezes real supply. The US put conditions on the ammunition.
The loop: Japan defends the yen → sells Treasuries → US long-term rates rise → liquidity leaves risk assets. Higher yields mean a higher discount rate. While China keeps squeezing and the yen needs defending, that is gravity for Bitcoin and stocks.
#Macro #BTC #CryptoNews #BinanceSquare #Liquidity #Yields