Bitcoin Eyes $70K as Japanese Bond Yields Soar to 17-Year High

Bitcoin (BTC) traders are bracing for further downside as Japan’s 20-year government bond yield surged to 2.265%, its highest level since 2008, adding to global economic uncertainty and fueling risk aversion.

The rising yield signals a possible interest rate hike by the Bank of Japan (BOJ), which could tighten financial conditions worldwide. Historically, similar moves have triggered sell-offs in risk assets, including Bitcoin, as investors shift towards safer investments.

In August 2024, a strong yen and surging bond yields sparked a broad market correction, sending BTC lower. Now, traders fear history may repeat, with $70,000 emerging as a key downside target in the coming weeks.

Traders Turn Cautious Amid Macro Turmoil

Crypto markets have entered a wait-and-watch phase, with traders wary of ongoing macro pressures, including the U.S. tariff war and Federal Reserve policy uncertainty.

“Global risk sentiment is fragile, and Bitcoin is feeling the heat,” said Jeff Mei, Chief Operating Officer at BTSE. “Unless there’s a shift in economic policy or a fresh bullish catalyst, BTC could remain under pressure.”

At the same time, the Federal Reserve’s reluctance to cut interest rates has dampened investor enthusiasm, reducing liquidity in risk assets.

Key Technical Levels in Focus

From a technical perspective, Bitcoin is now testing crucial support levels.

“The current price action is concerning,” said Augustine Fan, Head of Insights at SignalPlus. “BTC is approaching its 200-day moving average, and a break below could trigger further losses.”

A recent CoinDesk analysis warned that a sustained drop below $70K could accelerate downside momentum, potentially leading to even deeper corrections.

For now, traders remain cautious, closely watching bond markets and macroeconomic developments as Bitcoin faces its next major test.