Surging Japanese bond yields could pressure Bitcoin, analyst says

A recent surge in Japan's 10-year government bond yield to 2.30%, a move stimulating global financial markets, could amplify downward pressure on Bitcoin, according to an analysis. BeInCrypto reported that financial analyst Shanaka Anslem Perera warned on X that the yield has approached its highest level since 1999. He explained that with Japanese life insurance companies holding approximately $5 trillion in overseas assets, rising long-term domestic interest rates could spur a repatriation of funds as they increase investment in local bonds. This could trigger a sell-off of U.S. Treasurys, European bonds, and emerging market debt, thereby tightening global liquidity. Perera also cautioned that the yen carry trade—borrowing low-interest yen to invest in higher-yield assets—could face liquidation pressure from rising borrowing costs, potentially leading to a sharp sell-off across risk assets, including cryptocurrencies.