Cryptographic bulls may need to prepare for a little turbulence, since the performance of the 20 -year government bonds of Japan increased to its highest level since 2008 in a movement that has historically led to the aversion of risk assets such as Bitcoin (BTC).
The Japanese government bonus yield (JGB) rose to 2,265% last week, a level not seen from the world financial crisis, amid speculation of potential rates increases by the Bank of Japan (BOJ) and the increase in inflationary pressures.
These are conditions similar to August 2024, where the force in the Yen saw a sale of global actions of the actions to Bitcoin, as Coindesk reported at that time.
An increase in yields of Japanese bonds, together with geopolitical and economic uncertainties, is feeding concerns among merchants that BTC could face significant correction. The highest yields indicate that the Bank of Japan can increase interest rates to control inflation or administer its great public debt.
The increase in yields in Japan often indicates a broader global economic uncertainty or stricter financial conditions. This creates a stronger yen, which can reduce the attractiveness of transport operations, where investors borrow in yen to invest in higher performance assets such as BTC.
As such, merchants are pointing at a minimum of $ 70,000 for Bitcoin in the coming weeks amid macroeconomic nerves, a continuous tariff trade war and the general lack of market catalysts after a period prior to the presidential elections of the United States.
“We believe that geopolitical and economic uncertainty is causing institutions to reduce their cryptographic holdings, and Bitcoin could very well fall to the range of $ 70-80K in the coming weeks,” said Jeff Mei, director of Operations of BTSE, in a telegram message to Colesk.
“Only when this rate ends and the Fed resumes the cutting rates will exceed the cryptocurrencies of the trend tendency towards previous maximums of all time,” Mei added, reflecting a growing apprehension on the impact of the United States’s commercial policies and the capes of the Federal Reserve in the interests of interest rates in 2025.
On the other hand, Agustine’s fan, head of ideas in Signalplus, painted a gloomy technical image: “The price action has become technically very negative, and high -realization volatility has worsened the profile adjusted to the risk of BTC, with few (if there are) immediate positive catalysts on the horizon.”
Fans comments are aligned with a Coindesk analysis on Sunday, which said that BTC is testing the simple 200 -day mobile average (SMA) and a closure underneath could mean a critical break in a strong support line of support.
