Bitcoin 
$122,655.72With the sharp rise in Japanese government bond yields and the rapid depreciation of the yen, it lost momentum and retreated sharply from its last peak of $126,200. The price of Bitcoin, which broke records in both dollar and yen terms in the first days of the week, is the new prime Takaichi SanaeHe found support in ‘s allusion to a transition to Abenomics. However, the bond supply expectation created by the same policy trend and the mobility in the global interest channel cryptocurrencyIt diminished the appetite in the s. While the dollar index climbed to its highest level in the last two months, gold rose above $4,000 per ounce, deepening its separation from the market.
Japanese Bond Shake Affects Bitcoin
Japan’s new president Sanae’s announcement that there will be a return to Abenomics strengthened the signal that government debt will increase in the medium term. Markets quickly priced the risk in question and the 10-year Japanese government bond yield tested the highest level since July 2008 at 1.70 percent today morning. The increase of more than 13.31 basis points on a weekly basis and 76 basis points on an annual basis was also felt in long-term bond yields. The 30-year Japanese government bond yield was reduced to 3.16 percent after rising to 3.34 percent.
While the rise in bonds blocks risky assets through borrowing costs, Bitcoin’s technology stocksIt made its historical correlation with the world come to the fore again.
On the other hand, there is a risk that the volatility originating from Japan will spread to global bonds. cryptocurrency market It puts extra pressure on you. Goldman Sachs pointed out that the unusual 10 basis point Japanese government bond yield shock could have a 2-3 basis point upward impact on US, German and UK government bonds. Such a transfer is critical as it will tighten financial conditions and limit the rise in cryptocurrencies.
Gold Diverged as Dollar Strengthened and Yen Weakened
While the dollar index (DXY) reached the highest level in the last two months against the basket dominated by EUR and JPY, the yen has lost up to 3.5 percent of its value against the dollar since Friday last week. Discourses that maintain the low interest rate approach within the country will not be effective in the short term. Bank of JapanIt weakened the possibility of (BoJ) monetary tightening and accelerated the movement in parity. The strengthening caused by the euro and yen, which are the heavyweights of the basket, created a ceiling effect on dollar-denominated assets.
Rise in DXY Bitcoin and other dollar based commoditiesWhile limiting the upward movement of TL, safe haven demand started to operate through a different channel. After the increase in fund flows to precious metals, the ounce of gold moved above the $ 4,000 threshold. Despite the respite in Bitcoin and cryptocurrencies, the search for a safe haven became more evident on the precious metals side in the days when bond-foreign exchange volatility increased.
