Bank of Japan Bond Dump Triggers $635M in Bitcoin ETF Outflows in a Single Day!

A Bank of Japan foreign bond liquidation has sent shockwaves through crypto markets, triggering $635 million in Bitcoin ETF outflows in a single session — one of the largest single-day redemption events since spot BTC ETFs launched in the US.

The catalyst: the BoJ is scheduled to sell foreign bonds at 7:50 PM ET, and analysts are warning the scale could dwarf its previous operation. Last time, the central bank offloaded ¥887.7 billion, predominantly US Treasuries. With the US-Iran deal now cancelled, one widely-followed macro account is flagging the possibility of a ¥5 trillion sale — a figure that would send shockwaves through global bond markets and risk assets alike.

For Bitcoin, the read is straightforward: when the BoJ forces yen repatriation at this scale, leveraged risk positions unwind fast. ETF outflows of this magnitude suggest institutional holders are cutting exposure…