Rising US and Japan bond yields signal bearish outlook for Bitcoin
- The gap between the US’s longer-dated and shorter-dated bonds has reached its highest level since 2021.
- Japan’s long-bond selloff is contributing to rising US yields, with Japan’s 30-year bond yield hitting a record of 3.92%.
- The yield spread between Japan’s bonds widened by up to 325 basis points this week.
- Analysts predict Bitcoin could bottom in the $40,000-$50,000 range by the end of the four-year cycle in late 2026.
- Gold’s recent performance is drawing capital away from Bitcoin as investors seek lower-volatility assets.
The increasing gap in bond yields indicates a potential downturn for Bitcoin, as higher long-term yields typically reduce the appeal of non-yielding assets like cryptocurrencies. This trend aligns with predictions suggesting Bitcoin may struggle to maintain values above $100,000 amidst these economic pressures.
With Japan’s bond yield widening significantly and analysts forecasting a bearish market for Bitcoin, investors may need to prepare for challenging conditions ahead.(Source)
