Bitcoin’s recent all-time high may be linked to ongoing issues in the Japanese bond market, possibly signaling BTC’s growing recognition as a hedge against instability in the traditional financial (TradFi) system.
Bitcoin’s (BTC) price rose to a new all-time high of $112,000 on May 22, before retracing to change hands above $109,700 at the time of writing on May 26, Cointelegraph data shows.
While some attributed the rally to geopolitical developments, including US President Donald Trump’s announcement of Russia–Ukraine ceasefire talks on May 19, macroeconomic factors appear to be playing a larger role, according to market analysts.
BTC/USD, 1-year chart. Source: CointelegraphJapan bonds hit yield record
Bitwise’s head of European research, André Dragosch, pointed to growing concerns around Japan’s sovereign credit outlook, highlighting a spike in the country’s long-term bond yields.
Japan 30-year LSEG government bonds yield. Source: Cointelegraph/TradingView
The 30-year yield on Japanese bonds reached a new all-time high