Summary
- André Dragosch, head of research at Bitwise Europe, analyzed that the volatility in the Japanese bond market is driving the rise of Bitcoin.
- He stated that the instability in the bond market could make Bitcoin perceived as a hedge against government bond default risk.
- Dragosch also mentioned that bond volatility could be a positive factor for Bitcoin reaching the $200,000 target.
Bitcoin (BTC) has reached an all-time high (ATH), and this is attributed to the volatility in the Japanese bond market, according to analysis.
On the 26th (local time), Cointelegraph reported that André Dragosch, head of research at Bitwise Europe, stated, "The instability in the Japanese bond market has amplified concerns over national credit risk," adding, "This may have been a factor in increasing Bitcoin adoption by traditional financial institutions." On the 20th (local time), the yield on Japan's 30-year government bonds reached an all-time high of 3.185.
He continued, "When bond yields rise, concerns about the risk of government bond defaults increase. This leads to worries about credit downgrades, causing bond yields to rise again," and added, "The expansion of bond market volatility due to the 'fiscal debt vicious cycle' will make Bitcoin perceived as a hedge against government bond default risk."
Furthermore, he predicted that Bitcoin could reach $200,000 due to bond volatility. Dragosch stated, "The fiscal debt vicious cycle is affecting not only Japan but also global bond markets, including the United States," adding, "This is the key reason why Bitcoin could reach $200,000." However, he noted, "Support from companies and Bitcoin spot ETF purchases will be necessary."
As of 11:14 PM, Bitcoin is trading at $109,700 on Binance USDT market, up 2% from 24 hours ago.
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
