The post BTC Faces Pressure on Japan’s Bond Yields appeared on BitcoinEthereumNews.com.

Bitcoin investors are on the edge amid a strong Japanese bond outlook. Bitcoin investment is gaining momentum amid strong institutional adoption. The world’s biggest cryptocurrency, Bitcoin (BTC), faces intense pressure amid surging Japanese bond yields. According to reports, Japan’s 20-year government bond yield has reached its highest level since 2008, indicating potential risk aversion. Possible Impact on Bitcoin Last week, the Japanese Government Bond (JGB) yield rose 2.265%, hitting a 16-year record high since the global financial crisis. This surge coincides with increasing inflationary pressures and speculation of potential rate hikes by the Bank of Japan (BOJ). The recent scenario is reminiscent of similar conditions in August 2024. At the time, the Yen’s strength resulted in a global sell-off from equities to Bitcoin. Accordingly, analysts and investors have similar occurrences that could happen in the current cycle. They think Bitcoin could see a huge correction triggered by geopolitical and economic uncertainties. Higher yields suggest Japan’s Central Bank may hike interest rates to combat inflation or manage its massive public debt.  Japan’s bond yield and economy are in strong correction. When yields rise, it often indicates tighter financial conditions or economic uncertainties. Many investors anticipate that the BOJ will continue raising interest rates, promising higher yields.  This strengthens the Yen, reducing the appeal of carry trades. As noted in our earlier post, carry trades are an important source of global market liquidity since they allow investors to borrow Japan’s low-interest Yen. With the appeal for carry trades anticipated to reduce, market analysts have forecasted a pessimistic outcome for Bitcoin. Pessimistic Bitcoin Sentiment Many market analysts claim Bitcoin could drop to as low as $70,000 in the coming weeks amid macroeconomic jitters. Other factors likely to impact Bitcoin’s price include an ongoing tariff trade war and the general lack of market catalysts. …

---

Filed under: News - @ March 11, 2025 6:18 am