Bitcoin Faces Renewed Selling Pressure as Japan’s Bond Yields Hit 17-Year High
Bitcoin (BTC) traders are eyeing a potential drop to $70,000 as Japan’s 20-year government bond yield soars to 2.265%, its highest level since 2008. The surge in yields signals tighter financial conditions, which historically weigh on risk assets like cryptocurrencies.
Macroeconomic Turmoil Sparks Fears of BTC Correction
The combination of rising bond yields, ongoing trade tensions, and Federal Reserve policy uncertainty has left traders wary. In August 2024, a similar spike in Japan’s bond yields triggered a broad risk-off move across equities and crypto, and analysts fear history may repeat itself.
“Bitcoin and other risk assets tend to struggle when global yields climb,” said Jeff Mei, COO at BTSE. “If macro pressures persist, we wouldn’t be surprised to see BTC test the $70K mark.”
BTC at Risk of Breaking Key Support
From a technical perspective, Bitcoin is testing its 200-day moving average, a crucial support level. A decisive breakdown could accelerate selling pressure, leading to a steeper correction.
“The momentum has flipped bearish,” said Augustine Fan, Head of Insights at SignalPlus. “Unless BTC reclaims higher levels soon, we may see a more extended pullback.”
With geopolitical tensions rising and inflation concerns mounting, the coming weeks could prove critical for Bitcoin’s short-term trajectory.
