The Bank of Japan's recent decision to sell $2.2 billion in exchange-traded funds (ETFs) annually has created ripples in the financial markets, causing a notable decline in cryptocurrency prices. Following the announcement, Bitcoin's price fell from near $118,000 to just above $116,000. The BOJ will gradually liquidate its ETF holdings accumulated over the last 15 years, a process Governor Kazuo Ueda indicates may stretch over a century. Japan’s Nikkei index dropped over 1%, and the yield on the 10-year Japanese government bond increased to 1.64%. This move comes amid existing economic concerns, with Japan's debt-to-GDP ratio at around 240% and rising borrowing costs threatening fiscal stability. Additionally, the uncertainty surrounding future interest rate decisions further exacerbates market anxiety. As global fiscal conditions tighten, the crypto market, along with traditional equities, is bracing for increased volatility.

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