Japan’s 30-year bond yield just hit 3.15% — the highest on record. With national debt soaring to 260% of GDP, even Japan’s Prime Minister warned that the situation is now “worse than Greece.”
Imagine if something like this happened in the U.S. — it would shake global markets, and crypto wouldn’t be immune.
When bond yields rise, traditional assets like government bonds become more attractive, offering safer returns. This could also explain why gold is rallying right now — it thrives during uncertainty.
Meanwhile, Moody’s recently downgraded the U.S. government’s credit rating from AAA to Aa1, citing unsustainable debt levels and lack of meaningful progress to address them.
If U.S. debt spirals further and confidence in the dollar weakens, Bitcoin could emerge as an alternative store of value. However, unlike gold, Bitcoin hasn’t yet been tested in a full-blown financial crisis.
If the stock market crashes, crypto usually follows — at least initially. But in a crisis scenario, the Fed often responds by printing money or cutting interest rates. Maybe that’s why the Fed Chair recently said they’re "ready to provide liquidity if needed."
If that happens, we could see a surge in crypto. A weakening dollar could set the stage for Bitcoin to shine.💸☠️💵
