Japan’s 30-year bond yield has hit a new all-time high (ATH), a sign of bad news for assets considered risky, such as Bitcoin (BTC) and cryptocurrencies.
In the last few hours Yields on these bonds rose to 3,600%as seen in the following graph.
The impact of the rate hike is not limited to the Japanese market, first of all it corresponds to a more restrained shift by the Bank of Japan (BOJ).
As reported by CriptoNoticias, in December 2025, Japanese authorities raised short-term interest rates by 25 basis pointsthe interest rate will be from 0.5% to 0.75%. This is the highest level since 1995.
So why does it affect Bitcoin and cryptocurrencies? Well, monetary tightening suppresses “carry trades” in the yen, a strategy widely used by investors who raise funds in yen at low cost and invest in products considered risky in order to maximize profits.
with higher yields, This arbitration loses its appeal and many positions begin to fall apart.generate sales on global markets including BTC and cryptocurrencies.
However, the increased attractiveness of Japan’s sovereign debt relative to volatile assets will encourage the flow of funds into products considered safer.
at the same time, Strong yen forces portfolio adjustments and increases financial volatilitythis scenario typically leads to greater risk aversion and lower demand for BTC and cryptocurrencies in the short term.
Although the rise in Japanese government bond yields is not a direct factor on Bitcoin, it acts as an additional element of bearish pressure. In a market already conditioned by a tense geopolitical situation and heightened risk aversion.
When reduced global liquidity combines with increased macro uncertainty, the most volatile assets are usually the first to be affected.
New trade tensions have been added to this scenario, with US President Donald Trump announcing plans to impose a 10% tariff on imports from eight European countries, with tariffs of up to 25% starting in June. If no agreement is reached with Denmark over Greenland. The announcement reignited concerns about a trade war and heightened the mood of caution in global markets.
