"Japanese Government Bond Yield Reaches Highest Since 2008... Bitcoin Could Drop to $70,000"

Analysis suggests that as Japan's 20-year government bond yield surges to its highest level since 2008, Bitcoin (BTC) could potentially fall to as low as $70,000.

On the 9th (local time), CoinDesk reported, "Last week, Japanese government bond yields rose to 2.265%, reaching their highest level since the global financial crisis (2008)," adding that "along with geopolitical risks and economic uncertainties, the surge in Japanese government bond yields could potentially cause Bitcoin to fall to $70,000."

The media outlet explained, "Generally, rising government bond yields signal that the Bank of Japan is likely to curb inflation or raise interest rates," and that "as interest rates rise, the yen strengthens, which could significantly reduce 'yen carry trades' by large investors." They added, "Last August, when the yen strengthened, Bitcoin also experienced a significant decline." The liquidation of yen carry trades was previously identified as the cause of the 'Black Monday' incident that occurred on August 5th (Korean time).

Phmay, Chief Operating Officer (COO) of BTSE, stated, "As economic uncertainty increases, institutions are reducing their holdings of digital assets," and that "Bitcoin is likely to fall to the $70,000-$80,000 range within the next few weeks."

Augustine Fan, head of Signal Plus Insights, said, "Bitcoin's chart is technically in a very negative situation," adding that "there are absolutely no positive rebound factors visible for the time being."