Japan just hit a milestone nobody was excited about—the 40-year bond yield has climbed to 4% for the first time on record. This move comes after political uncertainty following the recent election call, sparking concerns about fiscal sustainability.

Here's why this matters beyond the bond markets: when major developed economies face fiscal stress, capital starts hunting for yield everywhere. That includes crypto and alternative assets. Higher real rates in traditional markets can either pull liquidity away from digital assets or push risk-on investors to seek better returns in the crypto space—it goes both ways.

The timing is interesting too. Global central banks are watching these moves closely. If Japan's bond situation escalates, it could signal broader debt management challenges that ripple through risk-on sentiment across all markets.

What's your read on this? Does widening fiscal concern make you more or less bullish on crypto allocations?