Bitcoin’s recent macro relief faces a challenge from Japanese interest rates
Japanese bond yields continue to rise, lifting their U.S. counterparts and posing a potential headwind for risk assets.
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Summary
- Yields on 10-year Japanese government bonds have jumped to a 30-year high, raising borrowing costs across major developed markets and threatening bitcoin’s recent rebound.
- Rising global bond yields increase the opportunity cost of holding bitcoin, which offers no income, and could offset the boost from softer U.S. inflation risks and weaker-than-expected job growth.
- The bitcoin price has climbed 8% to $64,000 this month on shifting Federal Reserve interest-rate expectations, but some banks, including Goldman Sachs, still favor yen-funded carry trades.
