Bitcoin's record rally could receive another boost as the global bond crisis heats up, with Japanese 30-year yields hitting new highs.
In brief
Japanese 30-year yields rose to 3.2% on July 15 due to fiscal concerns.
Global bond markets are beginning to resemble Japan's, highlighting growing skepticism about the reliability of sovereign debt as a safe haven asset.
Persistent concerns about inflation and budget stability are prompting a shift towards Bitcoin and gold.
Stress on global bond markets is beginning to spill over into risk assets, with Bitcoin emerging as a potential beneficiary.
A new shift to hard assets echoes past episodes where cracks in sovereign debt markets triggered defensive positioning. Japan's bond road may be an early warning of broader fiscal strain.
Unrealized losses on Japanese bonds are increasing, with 30-year yields rising to 3.2% on July 15, reaching levels not seen before, wiping out about 45% of their value since 2019, the Kobeissi letter wrote in an X article on Monday.
Japan's debt-to-GDP ratio has soared to 235%, leaving the Bank of Japan to nurse $198 billion in unrealized losses.
Source: decrypt
