Emre Yumlu 
The rise in Japan’s bond yields and economic uncertainties increase the likelihood of Bitcoin dropping to $70,000.
Rising Japan Bond Yields Signal Bitcoin’s Potential Drop
Japan’s 20-year government bond yield has surged to its highest level since 2008, raising concerns about a significant downturn in Bitcoin (BTC). Last week, Japanese government bond yields reached 2.265%, the highest level since the global financial crisis, amplifying fears that Bitcoin could drop to $70,000 due to a combination of geopolitical risks and economic uncertainties.
The increase in government bond yields typically signals that the Bank of Japan may take measures to control inflation or raise interest rates. As interest rates rise, the yen strengthens, reducing investor interest in higher-yielding assets such as BTC.
This trend mirrors a similar occurrence last August when the yen strengthened and Bitcoin experienced a notable decline. The liquidation of yen carry trades was previously linked to the ‘Black Monday’ event on August 5th.
Bitcoin Price Outlook Amid Economic Uncertainty and Japan Bond Yields
BTSE COO Jeff Mei stated, “As economic uncertainty increases, institutions are reducing their digital asset holdings,” suggesting that Bitcoin could fall within the $70,000-$80,000 range in the next few weeks. Mei also pointed out that geopolitical and economic uncertainty has driven institutions to reduce their crypto holdings and that Bitcoin may drop to these levels.
He added, “Only when the trade war ends and the Fed resumes cutting rates will leading cryptocurrencies resume their upward trend toward previous all-time highs.”
On the other hand, Augustine Fan, Head of SignalPlus Insights, provided a grim technical outlook: “Price action has become very negative, and the high volatility has worsened Bitcoin’s risk-adjusted profile, with no immediate positive catalysts in sight.” Fan noted that BTC is testing its 200-day simple moving average (SMA), and a close below it could signal a critical break in a strong support trend.
Rising Japanese bond yields and increasing economic uncertainties are intensifying concerns that BTC may face a significant correction.
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