Bitcoin News Today: Bitcoin Faces Pressure as Japanese Bond Yields Hit 17-Year High and Yen Weakens

Key TakeawaysJapanese bond yields hit a 17-year high, raising global borrowing costs and weighing on Bitcoin.Goldman Sachs warns that Japan’s yield surge could spill over into U.S. and European bonds.The yen has depreciated 3.5% against the dollar since Friday, pushing the DXY to a two-month high.Bitcoin trades lower after reaching record highs earlier this week in both USD and JPY terms.Bitcoin’s rally has stalled as rising Japanese government bond (JGB) yields and a weakening yen trigger renewed caution across global markets.According to TradingEconomics, Japan’s 10-year bond yield climbed to 1.70% on Wednesday, the highest level since July 2008, marking a 13-basis-point rise in a week and 76 basis points year-over-year. The 30-year yield briefly hit 3.34% before easing to 3.16%.Analysts warn that the surge reflects growing fiscal concerns linked to Japan’s Abenomics-style expansionary policies under new Prime Minister Takaichi Sanae, which prioritize heavy government spending. Increased bond issuance has pushed yields higher, tightening liquidity and reducing investor appetite for risk assets such as stocks and cryptocurrencies.“Rising JGB volatility could spill over into global bond markets,” Goldman Sachs strategists said, noting that a 10-basis-point JGB shock could add 2–3 basis points to U.S., German, and U.K. yields — potentially lifting borrowing costs worldwide.Meanwhile, the U.S. dollar index (DXY) has surged to a two-month high as the yen depreciated 3.5% since Friday. The currency’s decline is tied to expectations that the Bank of Japan will maintain ultra-low rates, reducing the likelihood of a near-term hike.Historically, a strong dollar and rising yields have capped upside momentum for Bitcoin, which often trades in line with tech stocks during risk-off periods.While Bitcoin consolidates after its all-time highs above $126,000, gold has surged past $4,000 per ounce, as investors shift toward safe-haven assets amid renewed macro uncertainty.