Bitcoin's latest all -time high could have been related to ongoing topics on the Japanese bond market, which can signal the growing recognition of BTC as security against instability in the standard financial (Tradfi) system.
The price of Bitcoin (BTC) rose to a brand new all-time high of $ 112,000 on May twenty second before the owner converted $ 109,700 on the time of the letter.
While some attributed the rally to geopolitical developments, including the announcement by US President Donald Trump from Russia – Ukraine ceasefire talks on May 19, macroeconomic aspects appear to play a bigger role, based on market analysts.
BTC/USD, 1-year diagram. Source: cointelegraph
Japan Bonds met the earnings record
Bitwise's head of European research, André Dragosch, identified growing concerns about Japan's sovereign credit views and emphasized the country's long -term rental income.
The 30-year-old return on Japanese bonds reached a brand new all-time high of three.185% on May 20, 2025, before May 23, as with tradingview data.
Government bonds are often thought to be refuge assets. However, if the yields rise sharply, it often signals investor concerns regarding tax sustainability and repayment risk. Japan's debt-BIP ratio exceeds 250%in comparison with the 62%of Germany, but each countries had 30-year bond returns close to three.1%on May 21.
“Since the income increases, sustainability becomes more of an issue, which suggests that the danger of credit increases, which suggests that the income increases much more,” said Dragosch. “And in order that they find yourself in one of these tax debt.”
According to Dragosch, the growing volatility on the Japanese bond market could cause some institutional investors to rethink the role of Bitcoin as a security against the so -depriving risk of default.
“This now affects other bond markets, especially on the US financial market,” added Dragosch.
The sovereign risk drives crypto attraction
The instability of the Japanese bond market raises confident credit risk problems, which results in an extra introduction of Bitcoin with tradfi participants, Dragosch told CoinTelegraph and added:
“Bitcoin is an unchangeable capital. It is free from the danger of counter -party.
“The perceived risk of failure continues to extend, the returns proceed to rise? This is a rough benchmark, why Bitcoin could head to $ 200,000,” said Dragosch, adding that this stays depending on the owners of Bitcoin battery on corporations and stock market funds (ETF).
In the meantime, the USSPOT -Bitcoin ETFs are lower than 1.3 billion US dollars from the over -control of the monthly refusal of 6.49 billion US dollars from November 2024, Cointelegraph reported on May 23.
