Attention, Asia! A financial storm is brewing, and it's got everyone talking. The rise in Japanese bond yields has sent shockwaves through the markets, and Bitcoin is feeling the heat.
As we wake up to a new day in Asia, the financial landscape is shifting. Short-term Japanese yields have reached unprecedented levels, last seen in 2008. This has strengthened the yen and put pressure on crypto positions, especially during Hong Kong's trading hours. Updated as of December 1st, 2025, this is your Asia Morning Briefing.
Welcome to your daily dose of market insights! Here's a quick rundown of what's happening:
Bitcoin's Slide: Bitcoin prices dipped below $90,000 during Hong Kong's morning trade, triggered by a surge in Japanese bond yields. This has caused a wave of risk-averse selling across the region.
Japan's Bond Yields: Japan's 2-year government bond yield briefly hit 1.01%, the highest since 2008. Traders are betting that the Bank of Japan's era of near-zero rates is coming to an end. Comments from BOJ Governor Kazuo Ueda, suggesting a potential rate hike evaluation at this month's meeting, have added fuel to the fire.
Yen's Impact: Traders pushed the yen higher during Tokyo's morning session, which will eventually lead to a reversal of yen-funded carry trades. These trades have been a key support for risk assets throughout the year, so their unwind could have significant implications.
Crypto's Reaction: Crypto markets, highly sensitive to liquidity conditions in Asia, took a hit. BTC dropped below $87,500, and Ether followed suit, with significant long positions being liquidated. This move highlights crypto's vulnerability to short-term liquidity shifts.
Prediction Markets: Uncertainty surrounds Japan's policy outlook. Prediction markets like Polymarket now price the chances of a December rate increase at around 50%, a notable increase from previous estimates.
Market Focus: This week, all eyes will be on the yen's movement and the BOJ's communication. Any further signals of tightening could spark another round of volatility across regional markets and the crypto space.
Market Movement:
- BTC: Bitcoin's slide below $87,500 triggered a wave of forced selling, with over $150 million in BTC longs liquidated. Rising Japanese yields forced traders to close leveraged positions.
- ETH: Ether fell towards $2,850, with about $140 million in long positions liquidated. Japan's changing rate outlook tightened liquidity during the early Asia session.
- Gold: Goldman Sachs reports that nearly 70% of institutional investors expect gold prices to continue rising. The largest group forecasts prices above $5,000 by 2026.
- Nikkei 225: Asia-Pacific markets slipped on Monday as traders awaited China's manufacturing data and priced in an 87% chance of a Fed rate cut. Japan's Nikkei 225 dropped 1.3%.
Other Crypto News:
- Bitcoin ETFs are now BlackRock's top revenue source, according to an executive. (CoinDesk)
- Ethena-incubated DEX Terminal Finance abandons its launch due to the failure of the Converge chain. (The Block)
Protocol Research:
GoPlus Security: As of October 2025, GoPlus has generated $4.7M in total revenue. The GoPlus App is the top revenue contributor, followed by the SafeToken Protocol. GoPlus Intelligence's Token Security API has seen impressive call volumes, peaking at nearly 1 billion calls in February 2025. The $GPS token has registered significant spot and derivatives volume since its launch in January 2025.
More Crypto News:
Major cryptocurrencies traded lower in early Asia, continuing November's downtrend. This decline was influenced by an 'incident' at DeFi platform Yearn Finance's yETH liquidity pool. (CoinDesk)
So, what do you think? Are these market moves a cause for concern, or just a blip on the radar? Share your thoughts in the comments below! We'd love to hear your insights and predictions.
