Japanese Bond Yields Hit 17-Year High, Bitcoin Faces Pressure
Bitcoin reached new all-time highs in U.S. dollar and Japanese yen terms, influenced by Japan's new Prime Minister, Takaichi Sanae, and her support for Abenomics.
Abenomics involves an expansionary fiscal policy with increased government spending, which could lead to a rise in bond supply and affect Bitcoin negatively through the bond market.
Japanese government bonds are experiencing higher yields, with the 10-year JGB yield reaching 1.70%, its highest since July 2008.
Higher bond yields typically reduce investor risk appetite due to increased borrowing costs, affecting risky assets like stocks and cryptocurrencies, including [Bitcoin](https://holder.io/coins/btc/).
Volatility in Japanese bonds may impact global bonds, with potential effects on U.S., German, and U.K. yields, according to Goldman Sachs.
The dollar index has reached a two-month high, driven by the depreciation of the Japanese yen, which has fallen 3.5% against the USD recently.
A stronger dollar tends to tighten financial conditions and limit the upside for [Bitcoin](https://holder.io/coins/btc/), gold, and other dollar-denominated assets.
While [Bitcoin's](https://holder.io/coins/btc/) rally has paused, gold continues to rise, surpassing $4,000 an ounce as investors seek safe-haven investments.
