The post Japanese Government Bonds Are CRASHING, How the Crypto Market Will React? appeared first on Coinpedia Fintech News

Japan’s 30-year government bond yield jumped sharply by 30 basis points in a single session, reaching a record high of 3

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Weak Bond Demand Losing Investor Confidence

Concerns have grown after new political promises of tax cuts ahead of Japan’s February elections. Investors fear lower tax revenue could force the government to take on more debt, adding pressure to a system already under strain. 

Japan already carries one of the highest debt levels globally, with government debt exceeding 250% of GDP, and rising yields increase the cost of borrowing and weaken confidence further.

What This Means for Bitcoin and Crypto

This type of financial stress creates massive volatility. When markets panic, investors often sell risk assets, including crypto, to raise cash. This may lead to sudden price drops in Bitcoin and altcoins. 

However, we already saw this last year when Japan raised the interest rate, cryptocurrency fell sharply, while bitcoin fell to near $74K. 

This is why gold and silver are now hitting new all-time high prices, and Bitcoin often follows after the initial shock.

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FAQs

Why do rising government bond yields often spook cryptocurrency markets?

Higher yields increase the opportunity cost of holding risk assets like crypto. Investors may sell Bitcoin and altcoins to park funds in safer, interest-bearing assets.

What could be the broader economic impact of Japan’s record-high bond yields?

Rising yields raise borrowing costs for businesses and the government, potentially slowing investment, weakening fiscal stability, and affecting global financial sentiment.

What might happen next if investor confidence continues to fall?

Further declines in demand could push yields higher, intensifying market stress and triggering more sell-offs in risk assets, including equities and cryptocurrencies.