Japan's 40-year government bond yield has surged from around 1.3% two years ago to 3.5%. Additionally, the benchmark 10-year government bond yield is hovering around 1.51%, reaching its highest level in two months. This increase began when the Bank of Japan stopped purchasing bonds, leading to an increase in the supply of bonds in the market and rising yields. The Japanese government has a debt of $7.8 trillion, making it the third most indebted government in the world, behind the United States and China. According to Reuters, Japan's debt-to-GDP ratio recently surpassed 260% for the first time, the highest among developed economies. A similar situation has also emerged in the United States, where long-term government bond yields have been pushed to their highest level since October 2023, exacerbated by the passage of a comprehensive tax reduction bill. It is worth noting that, unlike the United States, a significant portion of Japan's debt is held by domestic investors and entities, including the central bank. The rise in bond yields and debt levels in Japan and the United States may be good news for Bitcoin, as typically, higher bond yields can reduce the appeal of riskier assets like stocks, leading to a drop in valuations. Furthermore, this will also increase the cost of debt financing, driving up inflation. Bitcoin thrives on all of this, with its ongoing bull market driven by expectations of stronger growth, higher inflation, and a long-term higher interest rate policy.