{"id":24286,"date":"2025-05-26T19:21:45","date_gmt":"2025-05-26T16:21:45","guid":{"rendered":"https:\/\/forklog.com\/en\/bitwise-links-bitcoins-all-time-high-to-japanese-market-turmoil\/"},"modified":"2025-05-26T19:21:45","modified_gmt":"2025-05-26T16:21:45","slug":"bitwise-links-bitcoins-all-time-high-to-japanese-market-turmoil","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitwise-links-bitcoins-all-time-high-to-japanese-market-turmoil\/","title":{"rendered":"Bitwise Links Bitcoin’s All-Time High to Japanese Market Turmoil"},"content":{"rendered":"

The recent all-time high<\/a> of the leading cryptocurrency may have been driven by issues in the Japanese bond market, according to Andr\u00e9 Drago\u0219, head of research at Bitwise in Europe. This was reported by Cointelegraph<\/a>.\u00a0<\/p>\n

The analyst expressed concern about the prospects of Japan’s sovereign lending, highlighting the sharp rise in the country’s long-term bond yields.<\/p>\n

\"JP30Y_2025-05-26_17-57-19\"
Daily chart of Japan’s 30-year government bond yields. Data: TradingView<\/a>.\u00a0<\/figcaption><\/figure>\n

On May 20, the 30-year yield on Japanese bonds reached a new all-time high of 3.185%, before falling to 3.115% by May 23.<\/p>\n

\n

\u201cAs yields rise, sustainability becomes an increasingly important issue, meaning credit risk increases and yields rise even further. Thus, you find yourself in a sort of fiscal debt vicious circle,\u201d Drago\u0219 noted.\u00a0<\/p>\n<\/blockquote>\n

Meanwhile, The Kobeissi Letter highlighted anomalies in the Bank of Japan’s metrics. Currently, its refinancing rate stands at 0.5%, with the country’s debt-to-GDP ratio exceeding 250%. In contrast, Germany’s refinancing rate is at 2.25% (4.5 times higher), with a debt-to-GDP ratio of just 62% (one-fourth of Japan’s). Yet, the government bond yields of both countries are identical.\u00a0<\/p>\n

\n

Something does not add up here:<\/p>\n

The Bank of Japan currently has a policy rate of 0.50% and Japan has a Debt-to-GDP ratio of 250%+.<\/p>\n

Meanwhile, Germany has a policy rate of 2.25% (4.5x higher) and a Debt-to-GDP ratio of just 62% (1\/4 of Japan’s).<\/p>\n

However, 30Y Government Bonds in\u2026 https:\/\/t.co\/jwiU7vkfUc<\/a> pic.twitter.com\/DloeycD6Ws<\/a><\/p>\n

\u2014 The Kobeissi Letter (@KobeissiLetter) May 25, 2025<\/a><\/p><\/blockquote>\n