The article examines the relationship between rising bond yields and the price of Bitcoin in the context of global economic instability.
Importance of US Treasury Yields
Rising bond yields in the US raise concerns among investors about economic stability. US debt has exceeded $36.8 trillion, and interest payments are expected to total $952 billion in 2025. Political interference in the economy might worsen the situation, leading to investor discontent.
Yield Rise in Japan
Japanese bonds are experiencing significant yield increases, which also affect the market. Since 2024, the Bank of Japan has started raising rates. This creates pressure on the global economy, as Japanese investors have historically invested $1.13 trillion in US bonds using a strategy of low domestic borrowing.
Impact of Bond Volatility on Bitcoin Price
Despite rising bond yields, Bitcoin and stock markets continue to rise. This indicates that investors are moving away from traditional assets. Bitcoin is viewed as a safe alternative amid instability. Recently, there has been an increase in investments in cash Bitcoin funds, indicating recognition of it as a store of value.
Thus, Bitcoin might be seen as an alternative asset in the face of rising economic risks. The rise in bond yields highlights the demand for unconventional investment instruments.
