BTC sell-off deepens amid yen carry trade liquidations and USDT risks

Selling pressure is intensifying across the Bitcoin and broader cryptocurrency markets, driven by a surge in risk-off sentiment after Japan's 20-year government bond yield hit a 25-year high, CoinDesk reported, citing multiple analysts. The outlet noted that the spike in yields increases the likelihood of yen carry trade liquidations. Compounding the issue are growing global economic uncertainties, highlighted by emerging debt risks at AI companies and China's tightening regulations on digital assets. Stablecoin-related risks also persist. Investor sentiment was further dampened after S&P downgraded Tether's USDT stability rating to its lowest level of five, which was followed by USDT trading below the official exchange rate in China.