Crypto Traders Shift Focus to $70K BTC Target as Japan’s Bond Market Sees Historic Yield Spike

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

Bitcoin (BTC) is under pressure as Japan’s 20-year government bond yield climbed to 2.265%, its highest level since 2008, raising concerns about tighter financial conditions and reduced risk appetite among investors.

Historically, rising Japanese bond yields have coincided with downturns in global equities and crypto markets, as investors move away from risk assets. In August 2024, a similar spike in yields led to a broad sell-off in BTC, and analysts worry the pattern could repeat.

Market Uncertainty Weighs on BTC

Bitcoin’s recent struggles come amid growing macroeconomic uncertainty, including the U.S. tariff war, global inflation risks, and Federal Reserve policy concerns.

“With bond yields rising and risk sentiment deteriorating, Bitcoin could face further downside,” said Jeff Mei, Chief Operating Officer at BTSE. “We’re looking at a potential retest of the $70K level in the near term.”

Technical Breakdown Signals Potential Weakness

Analysts are also watching Bitcoin’s 200-day moving average, a key support level that, if broken, could trigger further selling pressure.

“The market structure has turned bearish,” said Augustine Fan, Head of Insights at SignalPlus. “If BTC fails to hold support, a deeper correction could follow.”

With no major bullish catalysts in sight, traders are preparing for a period of increased volatility as Bitcoin navigates a fragile macroeconomic landscape.

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