Analysis: Bitcoin is negatively correlated with Japanese government bond yields; Bank of Japan intervention may trigger a rebound.

Delphi Digital published an article stating, "Bitcoin prices are stagnating while gold continues to rise. The reason may lie in Japanese government bonds. Typically, rising yields increase the opportunity cost of holding non-yielding assets, thus putting pressure on gold. However, when gold and yields rise in tandem, the market is actually pricing in policy pressures and balance sheet vulnerabilities, rather than economic growth. The yield on 10-year Japanese government bonds is currently about 3.65 standard deviations above its long-term average. The Bank of Japan structurally holds long-term bonds and is deeply exposed to Japanese government bonds in terms of both assets and collateral. Gold is absorbing this pressure, while Bitcoin is negatively correlated with 10-year Japanese government bonds and has struggled relatively in the longer term as Japanese yields have risen. If the Bank of Japan intervenes to stabilize the government bond market, the risk premium in gold may ease, and Bitcoin will have room to rebound."