Markets are taking a hit this week with multiple headwinds converging. As world leaders gather at Davos, the real story behind the volatility is becoming clearer. Japan's bond situation has turned into something more serious than expected, sparking broader risk-off sentiment across global markets.

When you combine geopolitical uncertainty with central bank moves, crypto tends to follow the broader market down. We've seen this pattern before—traditional market stress often cascades into digital assets as investors cut positions across the board to raise cash.

The selloff suggests traders are reassessing their risk exposure. Whether this is a temporary correction or the start of a larger shift depends on how the week's major developments play out. Either way, keep an eye on both the macro picture and crypto's correlation with equity markets right now.