The price of Bitcoin (BTC) accelerated its decline due to its correlation with risk assets, while gold hit a new record. The move is influenced by rising Japanese government bond yields and an escalating tariff war. For this reason, experts believe that current investor behavior could change if Japan’s central bank intervenes.
“There is a very strong inverse correlation between BTC and gold”Analyst Michael van de Poppe summed it up as follows: On a technical level, consider that for Bitcoin to regain momentum, it will need to cross the 21-day and 50-day moving averages again.
“Be aware that if the Bank of Japan intervenes beyond these, gold could drop like a rock during that period and Bitcoin could see a strong 4% to 6% rally,” he said.
He also said that Donald Trump’s recent speech at Davos “didn’t move the market very much,” and emphasized that it “gives Bitcoin momentum.” good, The US president expressed optimism for assets. “The stock market will double,” the president said, despite threatening to impose tariffs on imports from European countries unless they allow him to buy Greenland and join the Peace Council.
Additionally, President Trump recalled at Davos that he is working “to ensure that the United States remains the crypto capital of the world.” Following this statement, Bitcoin stopped its decline and remained above $87,000 (USD).
Japanese government bonds take center stage
According to a report from CriptoNoticias, the yield on the 40-year Treasury note rose significantly above 4% this week, hitting a new all-time high. This reflects lower prices due to increased sales pressure. Yuichiro Tamaki, leader of the Democratic Party of Japan (Democratic Party), which opposes the government, said this. demanded a firm response from the authorities.
“The government and the Bank of Japan should respond decisively to excessive market movements,” Tamaki said, warning that volatility had reached “somewhat abnormal” levels. As he explained, policymakers could act by buying back bonds or reducing issuance of very long-term debt.
The background to the bond selling pressure is related to Prime Minister Sanae Takaichi’s remarks. same proposed suspending food taxes for two years and withdrawing fiscal policies deemed restrictive. This raised concerns about further government bond issuance.
When it comes to markets, Japan plays an important role. carry trade It is attracting worldwide attention due to historically low interest rates. Investors borrow yen to invest in high-yield assets. Therefore, a rise in Japanese government bond yields will prompt a shift in that strategy, increasing pressure on volatile assets such as cryptocurrencies and stocks.
The debt crisis and the search for refuge
From a more structural perspective, Robin Brooks, chief currency strategist at Goldman Sachs, warned: Bank of Japan intervention comes at a cost. “The Bank of Japan could intervene to lower yields, but that would mean printing more money, which would further exacerbate the yen’s depreciation,” he said.
Brooks went further, suggesting the market may be entering a more delicate phase. “We are in the early stages of a global debt crisis,” he said, explaining that rising long-term interest rates reflect growing concerns that debt levels will be difficult to maintain. In that context, he described a “desperate search for safe havens”, a phenomenon that moves precious metals and favors countries with low public debt.
parabitcoin, This scenario leaves mixed signals. Some analysts see a potential rebound if liquidity improves, but others warn that for now, digital currencies remain exposed to macroeconomic fluctuations that govern risk appetite globally.
(Tag translation) Central bank
