BTC Under Pressure as Japanese PM Sanae's Abenomics Pivot Lifts Bond Yields

Bitcoin is facing downward pressure amid rising Japanese bond yields, which have reached a 17-year high. The increase in yields signals potential rising borrowing costs globally, raising concerns among investors. Goldman Sachs indicates that the volatility in Japanese government bonds may affect securities within other major economies, particularly the U.S. While Bitcoin recently achieved record highs against both the dollar and yen, the shift in Abenomics policy under Japan's new Prime Minister may dampen its appeal as it contributes to a challenging bond market. Additionally, the strengthening dollar, coupled with a depreciating yen influenced by low domestic interest rates, further constrains risk assets like BTC. Despite recent setbacks in Bitcoin's rally, the precious metal gold continues to attract interest as a safe haven, impacting BTC indirectly. Overall, the intersection of bond yields, currency valuations, and macroeconomic shifts creates a complex landscape for Bitcoin and other risk assets as analysts watch for potential implications in the coming weeks.

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