According to a Reuters report published on October 8, 2026:
Japanese investors sold a net ¥503.6 billion ($3.19 billion) worth of foreign bonds during the week ended October 3.
This was the third consecutive week of net sales of foreign bonds.
The yield on 10-year U.S. Treasury bonds rose to around 5.36%, while the yield on 10-year Japanese government bonds climbed to its highest level in about 30 years.
The point is that higher yields in Japan make holding funds in the domestic market more attractive to some Japanese investors, and may lead them to reduce their investments abroad
How could this affect cryptocurrencies?
There is a chain of potential effects:
Some Japanese investors sell U.S. bonds and repatriate their money to Japan.
Lower demand for U.S. bonds could push their yields higher, if demand from other investors does not offset it.
Higher yields may make some traditional investments more attractive compared with high-risk assets.
Some investors may reduce their exposure to Bitcoin and altcoins, increasing selling pressure.
The most important question now is: are we seeing a temporary correction caused by position liquidations, or the beginning of a broader sell-off?
To answer more precisely, the current movement in Bitcoin needs to be considered alongside futures liquidations, Bitcoin fund flows, and movements in the dollar and bond yields. News alone is not enough to conclude that a new downturn has begun
