Fear from Japan for Bitcoin and Altcoins: Increase Raises Alarm!

The rise of Japan's 30-year bond yields by more than 30 basis points in three days is considered a critical warning for all risky assets, including Bitcoin (BTC).

Global markets are monitoring the effects of the sudden rise in Japan's long-term government bonds. Japan's 30-year government bond (JGB) yields surpassed 3% after increasing by more than 30 basis points in the last three trading days. This increase reflects the markets' concerns about Japan's fiscal policies and the uncertainties brought by the upcoming elections.

Behind the rising bond yields are Prime Minister Shigeru Ishiba's cash distribution plans for voters and the opposition's calls for tax cuts. Additionally, the new 25% tariffs imposed by U.S. President Donald Trump on Japan are also increasing stress in the markets.

Attention to Risky Assets!

According to experts, this rise in long-term bond yields in Japan could increase volatility in the bond markets of the U.S. and other developed economies. This is particularly important for investors tracking the MOVE index, which measures volatility in U.S. Treasury bonds. Historical data shows that Bitcoin's price peaks correspond to the low levels of the MOVE index, while price lows align with the peaks of the MOVE index.

The 20-year bond auction to be held by the Japanese Ministry of Finance on Thursday could further increase market volatility. Historically, sales that fall short of expectations in these auctions have caused fluctuations in long-term bond yields.

Japan, known for its low-interest rate policy for many years, is normalizing its monetary policy since 2023, supporting the rise in global interest rates. This situation continues to create new risks for risky investment instruments on a global scale.