Global markets shifted abruptly into a defensive posture this week, with U.S. equities dropping over 2% amid a dual shock of fiscal instability in Japan and renewed trade war tensions between the U.S. and Europe, according to a market commentary published by QCP on Wednesday, Blockspace reported. Bitcoin has fallen below $90,000, failing to hold its recent reclamation of the $97,000 level as the cryptocurrency struggles to find footing.

Japan’s government bond market jolted global finance this week after yields jumped fast, forcing officials to step in, 99Bitcoins reported. U.S. Treasuries wobbled in response, while Bitcoin hovered near recent ranges as traders paused. This fits a bigger macro story where bond stress, central banks and risk assets keep colliding. For crypto beginners, this sounds distant. It isn’t. Bond markets sit under everything, including Bitcoin. Japanese government bonds are IOUs backed by the world’s third-largest economy. When investors sell them hard, yields rise.

Japan's manufacturing activity expanded in January for the first time in seven months, buoyed by the biggest rise in new export ​orders in more than four years, a private-sector survey showed, Reuters reported. The S&P Global flash ‌Japan Manufacturing Purchasing Managers' Index (PMI) increased to 51.5 in January from December's final reading of 50.0, marking a ‌return to expansionary territory for the first time since June 2025. Readings above 50.0 indicate growth in activity, while those below point to a contraction.

Japan's exports rose for a fourth straight month in December, government data showed on ​Thursday, as slower shipments to the U.S. were offset ‌by strong demand elsewhere as well as by a boost to sales from the ‌yen's decline, Reuters reported. Total exports by value rose 5.1% year-on-year in, data showed, less than a median market forecast for a 6.1% increase and after a 6.1% rise in November. Exports to the U.S. fell 11.1% in December ⁠from a year earlier, ‌while those to China were up 5.6%, the data showed.

The Bank of Japan (BoJ) is expected to leave its benchmark interest rate unchanged at 0.75% after concluding its two-day monetary policy meeting on Friday, FXStreet reported. The central bank raised rates to a three-decade high in December. A pause now would allow policymakers to assess the economic impact of that move before tightening further. BoJ Governor Kazuo Ueda is expected to reaffirm the bank’s commitment to gradual policy normalization. Investors will closely scrutinize his press conference for clues on the timing and pace of future rate hikes.