Recently all of Bitcoin’s time can be linked to ongoing Japanese bond bond issues with a development that can signal a growing BTC recognition as a fence against instability in the traditional financial system (Tradfi).
Bitcoin’s (Btc) The 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 is displayed.
While some Rally relates to geopolitical developmentAlong with the announcement of US president Donald Trump of Russian -ukraine ceasefire talks on May 19, macroeconomic factors appear playing a bigger role, according to market analysts.
Japan’s bonds hit the yield record
The European Bitwise research head, André Dramotch, has taught growing concerns around Japan’s Sovereign Credit, featuring a spike in the country’s long -term bond yield.
The 30-year harvest in Japanese bonds reached a new time high of 3.185% on May 20, 2025, before retreating to 3.115% on May 23, TradingView data shows.
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Government bonds are generally considered safe properties. But when the yields rise sharply, it often indicates investor concerns about maintaining fiscal and payment risk. Japan’s UTA-GDP ratio exceeds 250%, compared to 62%of Germany, yet both countries have a 30-year bond near 3.1%on May 21, mentioned The Kobeissi letter.
“Because the yields are rising, maintenance becomes more than an issue, means increasing credit risk, meaning yields are rising,” Dragosch said. “And so you end up with this kind of loop of fiscal debt.”
DRamamotch said the growing volatility in the Japanese bond market may motivate some institutional investors to re -consider Bitcoin’s role as a fence against the sovereign default risk.
“It now affects other bond markets, especially the US Treasury market,” Drogosch added.
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The Sovereign Risk is pushing an appeal to Crypto
Japan’s bond bond raises credit hazard concerns, leading to more Bitcoin adoption to Trade participants, Drogosch said in cointelegraph, increasing:
“Bitcoin is an unchanged owner. It is no danger counterpart. It is a fence against the sovereign risk and default.”
“Notice the default risk is constantly rising, the produce continues to rise? It’s a rough benchmark as to why Bitcoin can head for $ 200,000,” Dragosch said, adding that it remains a condition of the continued accumulation of Bitcoin from corporations and exchange funds (ETF).
Meanwhile, the US area Bitcoin ETFs are Less than $ 1.3 billion away from exceeding the monthly record of $ 6.49 billion from November 2024, Cointelegraph reported on May 23.
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