Bitcoin faces pressure as Japanese bond revenues amounted to the highest level in 16 years: Can it decrease to 70 thousand dollars?
The return of government bonds in Japan has increased for 20 years to its highest levels since 2008, which led to fears that risk assets such as bitcoin may face renewable sale.
The return rose to 2.265 % last week amid increasing speculation that the Bank of Japan (BOJ) may raise interest rates to combat inflation and manage large public debt burden.
The acute height of the revenue attracted similarities to the market conditions in August 2024, when the strongest yin led to a wide sale in stocks and encrypted currencies.
During that period, investors sought safety in traditional assets, which led to the correction of the bitcoin price.
A similar pattern may appear now, especially if the yen enhances more US dollar.
The higher revenues generally refer to the most compromise financial conditions, and the inhibition of pregnancy trading, where investors borrow in the yen to invest in assets with a higher return such as bitcoin.
If the yen continues to estimate, traders can rest such situations, which may lead to pressure on bitcoin prices.
Founding investors are following the dead
Amid the high revenues of bonds and uncertainty in the wider macroeconomic economy, the founding investors began to reduce their exposure to Bitcoin.
The uncertainty surrounding American trade policies, as well as a cautious approach to the Federal Reserve in interest rate discounts in 2025, has led to an increase in the number of feelings in risk markets.
“We believe that geopolitical and economic uncertainty causes institutions to reduce their encryption possessions, and Bitcoin may decrease to a range between 70 and 80 thousand dollars in the coming weeks,” said Jeff Mai, the chief operational officer in BTSE, for Coindesk.
Bitcoin has been traded near its last highest levels, but now faces the opposite winds due to renewed fears of the most strict financial conditions around the world.
While some investors are still optimistic about the long -term prices, fluctuations in the short term and the lack of clear upscale stimuli may lead to more price corrections.
MEI added: “Only when this tariff war ends, the reduction rates of the Federal Reserve will resume, to turn towards the levels of all previous times,” which reflects the increasing arrest on the impact of American trade policies and a cautious federal reserve position on discounts in interest rates in 2025.
Technical indicators indicate the additional passive side
In addition to the total economic factors, technical indications indicate that bitcoin may be at the risk of deeper retreat.
Augustine Fan, head of visions at Signalplus, noted that Bitcoin is currently testing a simple 200 -day moving average (SMA), a decisive technical support level.
source: Coinmarketcap
“The price movement has turned into a very technically negative, and the superior fluctuations have increased from the modified BTC profile according to BTC risks, with a few immediate positive (if any) on the horizon,” Van said.
A constant break under SMA, which is 200 -day SMA, can turn a transformation in the market morale, which may accelerate more negative pressure.
Traders will closely monitor bitcoin prices and developments in the total economy to measure the next step in the cryptocurrency market.
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