Japanese 10-year government bond (JGB) yields have surged to nearly 2.40%, marking a level not seen since 1997, as inflation pressures mount due to rising oil prices and strong wage growth. This increase is driven by expectations of further rate hikes by the Bank of Japan (BOJ), which recently raised its short-term policy rate to 0.75% and ended its yield curve control framework.The rise in Japanese yields is pressuring Bitcoin and altcoins as leveraged positions unwind, tightening global liquidity. The yen carry trade, a significant source of liquidity for risk markets, is being unwound, leading to a reduction in leveraged bets in cryptocurrencies. This deleveraging is causing increased volatility, particularly in smaller altcoins, as traders exit positions amid rising borrowing costs.