Japan's 30-year bond yield has surged to 3.79%, raising concerns about potential impacts on the cryptocurrency market. The yen carry trade, valued at approximately $500 billion, has historically led to significant declines in Bitcoin and Ethereum whenever it unwinds. With the Bank of Japan expected to raise interest rates at its April 28 meeting, crypto strategist Ted warns of a possible liquidity crisis in Japan's bond market that could trigger a major sell-off in digital assets. The yen carry trade involves borrowing in yen at low interest rates to invest in higher-yielding assets, including cryptocurrencies. As Japanese yields rise, borrowing costs increase, prompting investors to withdraw capital and tighten global liquidity. This scenario has previously resulted in Bitcoin and Ethereum dropping by up to 20% following rate hikes. However, if yields rise too sharply, the Bank of Japan may intervene by injecting liquidity, potentially stabilizing risk assets like crypto.