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JAPAN WILL CRASH THE MARKET IN 3 DAYS!!

They’re currently sitting on $10 TRILLION in debt.

Every Japanese government bond yield just hit the highest level ever recorded.

Next week, Japan will start selling $500 BILLION in U.S. stocks to stabilize the economy.

Their economy is breaking - and it’s far worse than most people realize.

If Japan breaks, it doesn’t break alone.
It drags the global financial system with it.

They only survived because interest rates were near zero.
That support is gone.

Now as yields rise, the math gets ugly fast.
Debt payments explode.
Interest eats government revenue.

No modern economy gets through this cleanly:
→ Default
→ Restructuring
→ Or inflation

But this is where it hits everyone else.
Japan owns trillions in foreign assets.
Over $1 trillion in U.S. Treasuries.
Hundreds of billions in global stocks and bonds.

They bought all that because Japanese yields paid nothing.
Now Japanese bonds finally pay real returns.
After hedging, U.S. Treasuries actually lose money for Japanese investors.

This isn’t fear.
It’s simple math.
Money comes home.

Hundreds of billions leaving global markets isn’t gradual.
It’s a liquidity vacuum.

Then there’s the yen carry trade - over $1 trillion borrowed cheap in yen and thrown into stocks, crypto, EM… anything with yield.

As Japanese rates rise and the yen strengthens, those trades blow up.
Forced selling starts.
Margin calls spread.
Everything moves together.

At the same time:
→ U.S.–Japan yield spreads are shrinking
→ Japan has less reason to keep money overseas
→ U.S. borrowing costs rise whether the Fed likes it or not

And the Bank of Japan isn’t done yet.
Hike rates again in January?
The yen jumps.
Carry trades unwind harder.
Risk assets feel it immediately.

Japan can’t just print their way out this time.
Inflation is already hot.

Print more → yen falls → imports get pricier → domestic crisis.

They’re trapped between debt and currency - and the door is closing.

For 30 years, Japanese yields were the invisible anchor holding global rates down.

Every portfolio since the ’90s relied on it, whether people realized it or not.

That anchor just snapped.

Bonds fall.
Stocks fall even harder.
Crypto falls the hardest.

This is how “everything’s fine” turns into everything breaking at once.

The world is entering a rate environment no one alive has traded before.
I warned you before Japan shook the market in 2025.

And I’m warning you again.

Follow and turn on notifications - before it’s too late.

Anndy Lian
Nasdaq tumbles, but Bitcoin soars past US$97K on massive short squeeze

Markets entered a period of recalibration as US equities extended their losses for a second straight session amid shifting investor sentiment and geopolitical developments. The tech-heavy Nasdaq Composite led the retreat, falling one per cent to close at 23,471.75, while the S&P 500 dropped 0.53 per cent and the Dow Jones Industrial Average edged down just 0.09 per cent.

This rotation out of high-flying technology names reflected growing concerns about stretched valuations, compounded by external pressures such as China’s new restrictions on US cybersecurity software, which directly affect semiconductor giants like Nvidia and Broadcom. Investors appeared to favour economically sensitive sectors over growth-oriented tech, signalling a potential pivot in market leadership early in the year.

Global markets showed more resilience on January 15. Asian and European equities traded mixed or slightly higher, buoyed by optimism around artificial intelligence applications and signs that deflationary pressures may be easing in key economies. This divergence underscored a nuanced global outlook. While US markets grappled with domestic policy uncertainty and sector rotation, international investors focused on forward-looking catalysts in AI adoption and macroeconomic stabilisation.

Commodities and currencies also reflected this transitional mood. Crude oil prices plunged nearly three per cent, with West Texas Intermediate settling around US$60.22 per barrel after President Trump adopted a less confrontational tone toward Iran, alleviating fears of supply disruptions that had driven a five-day rally. Precious metals pulled back modestly from record highs, with spot gold hovering near US$4,610 per ounce. The US dollar held steady against the euro at approximately 0.85915 EUR per USD, suggesting stable foreign exchange dynamics despite underlying volatility in risk assets.

In stark contrast to the equity pullback, the crypto market advanced 0.89 per cent over the past 24 hours, extending a seven-day rally that has delivered a cumulative gain of 4.86 per cent. This momentum stemmed primarily from two powerful forces: a decisive technical breakout in Bitcoin and a surge in institutional demand through spot ETFs. Bitcoin shattered the US$95,000 resistance level that had contained its price action since December, climbing to US$97,000 on heightened volume.

The move triggered US$588 million in short liquidations, the largest since November 2025, fuelling a classic short squeeze that amplified upward momentum. With the Relative Strength Index now at 75.42, the asset sits in overbought territory, and traders remain fixated on the psychological US$100,000 milestone.

Simultaneously, institutional appetite reemerged with remarkable force. On January 13, spot Bitcoin ETFs recorded US$753.7 million in net inflows, the highest single-day total since October 2025. BlackRock’s IBIT fund alone attracted US$391 million, reinforcing the narrative that large financial players continue to view Bitcoin as a strategic macro hedge rather than a speculative instrument. This renewed confidence from traditional finance provided critical support amid lingering retail caution, effectively anchoring the broader crypto rally.

Sentiment metrics corroborated this shift. The Fear & Greed Index climbed to 54, moving from “Fear” into “Neutral” territory, up 11 points from the prior week. This improvement suggests that market participants are regaining composure after weeks of uncertainty, creating fertile ground for altcoin participation alongside Bitcoin’s leadership.

In my view, this moment marks a pivotal inflection point in the evolving relationship between traditional and digital asset markets. While US equities undergo a necessary correction, particularly in the overvalued tech sector, crypto is demonstrating increasing maturity through institutional validation and technical conviction. The juxtaposition is telling.

As political scrutiny intensifies around the Federal Reserve and banking regulations, and as geopolitical risks temporarily recede, capital seeks alternatives that offer both asymmetric upside and structural independence. Bitcoin’s breakout above US$95,000 is not merely a price event. It is a signal that the asset class is increasingly decoupling from short-term equity volatility and asserting its role within diversified portfolios.

Sustainability remains contingent on price holding key support. A failure to maintain levels above US$96,000 could invite profit-taking, especially given the elevated RSI. For now, the confluence of technical momentum, institutional flows, and improving sentiment paints a cautiously optimistic picture. Crypto’s rally may persist even as traditional markets navigate choppy waters.

 

Source: https://e27.co/nasdaq-tumbles-but-bitcoin-soars-past-us97k-on-massive-short-squeeze-20260115/

 

The post Nasdaq tumbles, but Bitcoin soars past US$97K on massive short squeeze appeared first on Anndy Lian by Anndy Lian.

SOFR, short for the Secured Overnight Financing Rate, is one of the most important interest rate benchmarks in modern finance. It reflects how much it costs to borrow US dollars overnight when the loan is backed by US Treasury securities. In simple terms, SOFR provides a daily snapshot of real borrowing costs in one of the safest and most liquid markets in the world.
After years of relying on less transparent benchmarks, financial markets have largely embraced SOFR as the new standard for US dollar–based contracts. Today, it underpins everything from corporate loans and mortgages to complex derivatives traded by large institutions.

Understanding SOFR at a Glance
SOFR is administered by the Federal Reserve Bank of New York in collaboration with the US Treasury’s Office of Financial Research. Unlike older benchmarks that were based on estimates, SOFR is calculated using actual transactions from the repurchase agreement, or repo, market.
In the repo market, financial institutions borrow cash overnight and use US Treasuries as collateral. Because these transactions are secured and extremely liquid, they provide a reliable view of real-world borrowing costs. SOFR is published every business day at 8 a.m. Eastern Time and reflects activity from the previous trading day.
How SOFR Is Calculated
SOFR is built from real trades rather than opinions or forecasts. The data comes from three main types of repo transactions.
One source is third-party repos, where a clearing bank acts as an intermediary between cash lenders and borrowers. Another source is General Collateral Financing repos, which are centrally cleared through the Fixed Income Clearing Corporation. The third source is bilateral repos, which are direct agreements between two parties and also cleared by the FICC.
All of these transactions are collected and analyzed by the New York Fed. To calculate SOFR, they use a volume-weighted median rate, which reflects where most of the trading activity occurs. With more than one trillion dollars in daily volume, this approach makes SOFR highly robust and resistant to manipulation.
Why SOFR Replaced LIBOR
For decades, global markets relied on LIBOR, the London Interbank Offered Rate. However, during the 2008 financial crisis, serious flaws became clear. LIBOR was based on what banks said they might charge each other, not on actual transactions. This made it vulnerable to manipulation and less reliable during periods of stress.
As a result, regulators pushed for a new benchmark built on real market data. SOFR emerged as the preferred replacement for US dollar contracts, while other regions adopted similar “risk-free rates.” By 2023, LIBOR was almost entirely phased out, and SOFR became the dominant reference rate in US markets.
SOFR Averages and the SOFR Index
Because SOFR is an overnight rate, it isn’t always practical for longer-term financial products. To solve this, SOFR averages and the SOFR Index were introduced.
SOFR averages smooth daily rates over longer periods, such as 30, 90, or 180 days. These averages are commonly used in adjustable-rate loans and other instruments that need a more stable reference.
The SOFR Index, launched in 2018, tracks how SOFR compounds over time. It simplifies interest calculations for contracts that span weeks or months and has become a key tool in the post-LIBOR world.
Why SOFR Matters in Finance
SOFR now serves as a backbone for a wide range of financial products. Many business loans, mortgages, bonds, and derivatives reference SOFR directly. Its transaction-based nature makes it more transparent and trustworthy than older benchmarks.
Because it is secured by US Treasuries, SOFR is considered a near risk-free rate. This makes it especially useful for pricing instruments where safety and reliability are critical.
The transition to SOFR also brought global alignment. Similar benchmarks exist elsewhere, such as SONIA in the UK and €STR in the eurozone, all designed around the same principles of transparency and real transactions.
Advantages and Challenges of SOFR
One of SOFR’s biggest strengths is credibility. It is based on real trades, not estimates, which makes manipulation extremely difficult. The sheer size of the repo market also gives it stability, even during periods of volatility.
That said, SOFR is not perfect. Because it is an overnight rate, additional calculations are required for longer-term lending. During moments of market stress, SOFR can spike as demand for cash increases, although it still reflects actual conditions more accurately than older benchmarks.
SOFR Futures Explained
SOFR futures allow traders and institutions to hedge or speculate on future interest rate movements. These contracts are traded on the Chicago Mercantile Exchange and have become a core part of interest rate risk management.
SOFR futures are based on the expected average SOFR rate over a defined period. The most common contracts are one-month and three-month SOFR futures. They are cash-settled, meaning no physical exchange of cash or securities takes place at expiration.
The price of a SOFR futures contract is quoted as 100 minus the expected SOFR rate. As market expectations shift, the contract price moves accordingly. This allows banks, asset managers, and hedge funds to manage exposure to changing borrowing costs.
SOFR Compared With Other Rates
Compared to LIBOR, SOFR is far more transparent and safer, though it lacks built-in forward-looking terms without additional calculations. When compared to the federal funds rate, SOFR covers a broader range of secured transactions and reflects deeper liquidity.
Globally, SOFR fits into a broader family of risk-free rates, each tailored to its local financial system. What makes SOFR unique is its direct connection to the US Treasury repo market.
Does SOFR Affect Crypto Markets?
SOFR does not directly price cryptocurrencies, but it can still influence sentiment. Because it reflects short-term borrowing costs and liquidity in traditional finance, changes in SOFR often signal shifts in broader monetary conditions.
When SOFR rises, borrowing becomes more expensive, and investors may become more cautious. This can reduce appetite for riskier assets, including cryptocurrencies. When SOFR remains low, liquidity is generally more abundant, which can support speculative investment.
SOFR futures also offer insight into how institutional investors expect interest rates to evolve, which can indirectly shape market behavior across stocks, bonds, and crypto.
Closing Thoughts
The Secured Overnight Financing Rate has become a cornerstone of modern finance. By replacing LIBOR with a transparent, transaction-based benchmark, SOFR has improved trust and stability across financial markets.
With its deep ties to the US Treasury repo market and growing ecosystem of futures and averages, SOFR is likely to remain the standard for US dollar interest rates for years to come. Understanding how it works offers valuable insight into both traditional finance and the broader macro environment that influences all asset classes.
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Animoca Brands acquires Somo to integrate its collectibles and gaming ecosystem into Animoca’s global Web3 network. Animoca Brands announces completion of its acquisition of Somo on 14 January 2026, integrating Somo’s digital collectibles and gaming titles — including Somo Codex, Somo Duel, and Somo Battleground — into Animoca’s Web3 ecosystem. The deal is intended to […]