Panic in the Japanese government bond market has extended to the cryptocurrency sector, with Bitcoin prices dropping below $91,000. On January 20th, the yield on 30-year Japanese government bonds surged over 30 basis points to 3.91%, marking a 27-year high. This spike has triggered a sell-off in global risk assets, including cryptocurrencies. The rise in bond yields reflects a tightening of global liquidity, as Japan's role as a key liquidity provider diminishes. This situation, compounded by geopolitical tensions such as Trump's tariff threats, has heightened market risk aversion. Analysts warn that the Bank of Japan's limited policy options could further strain global liquidity, potentially leading to significant financial disruptions.