Bitcoin is under pressure after Japanese government bond yields surged to their highest levels in 17 years, while the yen weakened sharply, denting risk appetite for crypto and other growth assets.
After hitting record highs last week, Bitcoin has stalled as the bond market reacts to Prime Minister Takaichi Sanae’s commitment to Abenomics-style fiscal expansion. Higher government borrowing is driving 10-year JGB yields to 1.70%, the highest since July 2008, and briefly pushing the 30-year yield to 3.34%, according to TradingEconomics.
Rising yields typically curb speculative demand, raising borrowing costs and reducing appetite for riskier assets. Historically, Bitcoin has moved in step with high-growth tech equities, and this macro tightening is adding downward pressure.
The U.S. dollar index (DXY) climbed to a two-month high, largely due to a 3.5% drop in the yen, further tightening liquidity for dollar-denominated assets like Bitcoin.
Market strategists also warn of potential spillovers: Goldman Sachs projects that each 10-basis-point rise in Japanese yields could push U.S., German, and U.K. yields up by 2–3 basis points, amplifying volatility across global markets.
Despite the headwinds, Bitcoin remains above key support levels, while gold continues to surge past $4,000 per ounce, reinforcing its role as a safe haven amid rising yields and currency volatility.
