Bond Yields Squeeze Bitcoin as Rate Hikes Loom

The recent surge in Japan's 10-Year Government bond yield has brought selling pressure to Bitcoin. On September 1, the yield surpassed 3%, a level it has maintained since October 1996. This development is significant as Japan plays a substantial role in international capital flows.

As the yen weakens to a 40-year low, there are growing concerns about the need for policy makers to intervene and support their currency. Scott Bessent, Treasury Secretary, hinted at measures being considered by Japan to address this issue, which could lead to further monetary tightening.

The US 10-Year Treasury yield has also surpassed 4.78%, making government bonds more attractive than Bitcoin. As yields rise, investors tend to sell speculative assets and buy government bonds, putting additional pressure on Bitcoin's price.

Ali Charts, a crypto analyst, suggests that Bitcoin may experience a significant decline, potentially reaching $70,000 due to similarities between its current pattern and the 2023 bottom pattern.