Japanese 20-Year Government Bond Yield Hits 17-Year High ... Bitcoin Could Adjust to $70,000

# Japan's 20-Year Bond Yield Hits Highest Level Since 2008, Raising Volatility Concerns for Bitcoin and Other Risk Assets By Joon-hwa Lee, Block Media Analysis from CoinDesk on October 10 warns that investors in Bitcoin and other risk assets should brace themselves for increased volatility as Japan's 20-year government bond yield reaches its highest level since the 2008 financial crisis. According to the report, the yield on Japan's 20-year government bond (JGB) climbed to 2.265% last week. This marks the first instance of such an increase since the global financial crisis, driven by potential interest rate hikes from the Bank of Japan (BOJ) and rising inflationary pressures. A similar scenario occurred in August 2024, resulting in a strong yen, which led to selling pressure in global equity and Bitcoin markets. # Bitcoin Could Correct to $70,000 Concerns are mounting that Bitcoin could undergo a significant correction due to the confluence of rising Japanese bond yields and global macroeconomic uncertainties. An increase in Japanese interest rates suggests that the BOJ might raise rates further to control inflation or manage national debt. A hike in Japanese rates signals a tightening in global financial markets, prompting investors to reduce carry trades involving the yen. This could diminish the appeal of risk assets like Bitcoin. Consequently, some traders are projecting that Bitcoin may fall to $70,000 in the coming weeks. Factors such as U.S.-China trade tariff disputes, market uncertainties ahead of the U.S. election, and broader macroeconomic concerns are expected to drive Bitcoin’s decline. Jeff Mei, Chief Operating Officer of BTSE, noted in a Telegram interview with CoinDesk, "As geopolitical and economic uncertainties grow, institutional investors are reducing their cryptocurrency holdings. Bitcoin is likely to adjust to the $70,000-$80,000 range in the coming weeks." He added, "For major cryptocurrencies to surge towards all-time highs again, the current tariff war needs to end and the Federal Reserve must resume interest rate cuts," emphasizing the impact of U.S. trade policies and Federal Reserve's interest rate policies on the market. # Technical Analysis Also Negative Augustine Pan, Head of Insights at SignalPlus, also warned of Bitcoin's downside potential from a technical standpoint. "Bitcoin’s price movement has turned technically very negative," he noted. "Increased volatility is deteriorating Bitcoin’s risk-adjusted returns, and there are few positive catalysts in the short term.” Pan’s analysis aligns with CoinDesk’s report from last Sunday, which highlighted that Bitcoin is testing its 200-day Simple Moving Average (SMA). Should it close below this level, a significant support line could be breached. As of 10:52 AM New York time on October 10, Bitcoin was down 4.59% over the past 24 hours, trading at $79,455 according to CoinMarketCap.