TL;DR:
- The 10-year Japanese government bond yield reached 2.29%, its highest level since 1999.
- Bitcoin has fallen more than 6% in the last week, currently trading below $90,000.
- Trade tensions between the US and Europe over the Greenland case aggravate risk aversion.
Mid-week brings a perfect storm to the global financial ecosystem. The impact of Japanese bonds on Bitcoin and markets has triggered a defensive drive among investors, who are now watching with concern as JGB yields skyrocket to levels not seen in decades.
This entire movement caused Bitcoin to lose the momentum that took it near $97,000, now retreating to critical levels. Analysts at QCP Asia indicate that the pioneer crypto is behaving like a rate-sensitive risk asset rather than a safe haven.
On the other hand, selling pressure in the Japanese debt market is massive, with insurers offloading billions in bonds. Consequently, global liquidity is tightening, which limits risk appetite and puts downward pressure on both US equities and cryptocurrencies.
Tariff Risks and Critical Supports for Bitcoin Price
The bond market is in chaos, but the geopolitical landscape adds an extra layer of volatility following President Trump’s threats. The implementation of 10% tariffs on eight European countries has fractured transatlantic trade relations, raising fears of a large-scale trade war.
In this scenario, experts like CryptoMitch warn that Bitcoin could continue to slide to the bottom if there is no clarity from Japan. The $86,000 level is now identified as the vital support that must be maintained to avoid a deeper fall toward the $80,000 zone.
In summary, the market remains attentive to the European Union’s response and the upcoming debt auctions in the Asian country. As financial conditions continue to tighten, volatility will continue to dominate the boards of major digital asset exchanges and international stock markets.
