PANDA PROFITS

And this is due to one major reason.
This week, Japan 10-year bond yield surpassed the 2008 financial crisis level.
And this happened after BOJ hiked rates to their highest level in almost 30 years.
As we know, when Japan bond yields go high, the crypto market suffers.
But that doesn't happen the same week.
After Jan 2025 rate hike, $BTC dumped 7% next week.
After July 2025 rate hike, BTC crashed 20% next week.
After March 2025 rate hike, BTC crashed 10% next week.
Looking at this, it makes sense that we could see another dump next week, which will most likely be the local bottom.
But what will happen after this?
Unlike past 3 events, Bitcoin won't hit a new ATH soon.
This is because BTC is still following the 4-year cycle.
We may see a short-term rally, but there will be another downtrend after that.
The crypto market won't bottom until the Fed starts QE like 2020, and here's how it could happen.
As Japanese yields rise, investors sell their assets.
They sell stocks, crypto, and even T-bills.
That selling pressure pushes US yields even higher, which makes US debt unsustainable.
High yields make borrowing hard, and crypto gets hit first.
Now for the important part on what comes next.
Historically, when bond yields rise too far and too fast, central banks step in.
They do not allow bond markets to break.
When this happened before, the response was:
• Policy reversal
• Liquidity injections
• QE to stabilize markets
That is exactly what we saw in 2020-2021.
Many central banks are already easing.
If Japan’s yields keep rising and drag US yields higher, pressure on the Fed increases.
At that point, QE becomes a necessity, not a choice.
Short term:
• Rising US and Japan yields = pressure on crypto
• Volatility stays high
Medium to long term:
• Bond stress forces easing
• Liquidity returns
• Crypto benefits the most as the money printer goes brrrr.....
This is why I'm patiently waiting for a full market reset, as there will be once again a generational opportunity similar to the Covid crash.