A deal between Japan and the United States to prevent the Japanese central bank from unloading U.S. Treasury bonds could have an impact on cryptocurrency markets, including Bitcoin. According to experts, such an agreement could create uncertainty in the market and cause a surge in liquidity in assets such as Bitcoin.
Dante Cook, head of Swan Business, expressed concerns about this scenario, noting that Japan is the largest holder of U.S. Treasury bonds. He suggests that without intervention from the U.S. government, Japan may be forced to sell its reserves to support its currency, which could lead to market uncertainty.
A possible sell-off of U.S. Treasuries by Japan could cause a surge in liquidity as investors would seek a safe haven for their funds. As a result, Bitcoin, as one of the liquidity sinks, could come under increased pressure.
However, despite the potential risks, the impact of this deal on the cryptocurrency markets remains subject to further observation. Market reactions to such events often depend on a number of factors, including the reaction of institutional investors, the geopolitical environment, and other factors.
