The cryptocurrency market is starting to calm down after yesterday's shock. Bitcoin is now at 71.72K, Ethereum at 2.22K, and XRP remains steady at 1.33. Everything is stable after sharp fluctuations earlier this week. It turns out the main trigger was Japanese bonds. Today's bond prices show a significant recovery, especially for long-term bonds that had previously surged dramatically. When Japanese bond yields fall, pressure on the global market decreases, including crypto. This is important because Japan is a center of global capital flows. The simple reason: when bond yields are high, investors shift to safer, interest-bearing assets. But now that Japanese bonds are starting to recover, there's no longer a need to withdraw liquidity from speculative assets like crypto. As a result, Solana, Cardano, and other altcoins are also stabilizing. However, caution is still advised. The crypto market remains highly sensitive to bond price movements. If bond yields suddenly rise again, it could quickly push Bitcoin and other digital assets down. So, keep monitoring global bond developments, not just coin prices.

I noticed that XRP dropped 4% in the past day, and the reason is quite significant – the network experienced approximately $1.93 billion in realized losses in just one week. This is the largest increase in losses since 2022, indicating intense panic selling from investors. The price fell from $1.36 to $1.33 due to high trading volume. Such a massive capitulation event has historical significance – the last time this happened 39 months ago, XRP rallied 114% over the next 8 months. This shows that these emotional surrender moments often serve as turning points in the market. Realized losses are different from paper losses – they are actual money lost by hodlers who decided to lock in their losses. To reach this amount, aggressive selling pressure is needed, but there are also buyers on the other side willing to take risks. Weak hands are exiting, and the holder composition is shifting from short-term traders to longer-term believers with deeper conviction. But the context is important. The picture includes macro uncertainty and ongoing regulatory changes that continue to create headwinds. The rise in realized losses signals that sellers may be exhausted, but it doesn’t eliminate broader market pressures. The next few weeks are critical – sustained demand and lower selling pressure are needed to see a real recovery. If losses continue to rise or quickly rebound, it means the distribution phase is not over yet. For now, the data points to an emotional capitulation moment. Historically, this has been a good entry zone for believers. The market sentiment’s debut in blue bills is at a critical juncture – depending on what happens next, the market could truly turn around or the pressure could just continue.