BTC Bulls Set Sights on $70K Amid Surge in Japan’s 10-Year Bond Yields

Bitcoin Traders Brace for $70K Retest as Japan’s Bond Yields Hit 17-Year High

Bitcoin (BTC) may be heading for a significant pullback as Japan’s 20-year government bond yield surges to levels not seen since 2008, raising concerns over tighter global financial conditions.

The Japanese Government Bond (JGB) yield spiked to 2.265% last week, fueling speculation that the Bank of Japan (BOJ) could hike interest rates to combat inflation. Historically, rising JGB yields have triggered risk-off sentiment across global markets, putting pressure on assets like Bitcoin and equities.

This scenario is reminiscent of August 2024, when a strengthening yen and surging bond yields led to a sharp downturn in stocks and crypto. Analysts fear a repeat, with Bitcoin’s price action already showing signs of weakness.

Market Signals Turn Bearish

With economic uncertainty mounting, traders are now targeting $70,000 as Bitcoin’s next key support level, citing the ongoing trade war, macroeconomic jitters, and fading bullish momentum ahead of the U.S. presidential election.

“A combination of geopolitical risks and rising bond yields is forcing institutions to scale back risk exposure, and crypto is feeling the pressure,” said Jeff Mei, Chief Operating Officer at BTSE. “Bitcoin could see a deeper correction unless sentiment shifts.”

The Federal Reserve’s cautious stance on rate cuts has added to the unease, as investors had hoped for a more dovish pivot. “Without a clear signal from the Fed on easing monetary policy, Bitcoin may struggle to reclaim higher levels,” Mei added.

Technical Breakdown on the Horizon?

From a technical perspective, BTC’s price structure is weakening. Augustine Fan, Head of Insights at SignalPlus, pointed to a deteriorating risk-adjusted profile for Bitcoin.

“Bitcoin’s realized volatility is increasing, and price action is flirting with key support levels,” Fan noted. “A break below the 200-day moving average could open the door for a larger correction.”

A recent CoinDesk analysis echoed this sentiment, warning that BTC is at risk of breaching a critical trendline that has supported its multi-month rally. A sustained move below this level could accelerate sell-offs, pushing Bitcoin toward $70K or lower in the near term.