PANews reported on May 21 that QCP Capital, a Singapore-based crypto investment institution, stated that Japan's 30-year government bond yield broke through 3%, reaching a historic high and triggering a chain reaction in global financial markets. Japan's government debt-to-GDP ratio has reached 234%, and recent comments by Prime Minister Shigeru Ishiba have intensified market concerns about fiscal sustainability. Although the yen exchange rate is traditionally more influenced by short-term interest rate differentials, continued bond market sell-offs could potentially trigger capital inflows and strengthen the yen in the short term.
The US 30-year Treasury bond yield simultaneously rebounded above 5%, with investors worried about the debt outlook following potential obstacles to Trump's $3.8 trillion fiscal plan. Against a backdrop of macroeconomic pressure, Bitcoin failed to break through $108,000, with analysis showing current buying primarily comes from strategic investors and continuous purchases by listed company Metaplanet. However, the market is concerned that a potential weakening of institutional buying momentum could trigger profit-taking.
The report noted that despite multiple pressures including soaring bond yields, escalating tariffs, and US stagflation risks in the third and fourth quarters, Bitcoin has demonstrated strong resilience over the past month. If the price breaks through previous highs, it might trigger FOMO sentiment among retail investors and propel a new round of increases. Currently, the market needs to closely monitor the transmission effects of Japanese bond market volatility on global risk assets.
