Japanese Bond Yields Weigh on Bitcoin Price Amid Yen Rally

Bitcoin's price is under pressure from rising Japanese government bond yields and a strengthening yen. The 10-year bond yield has reached 3% for the first time since 1996, causing borrowing costs to increase and concerns over a $500 billion yen-funded carry trade unwind.

This scenario affects non-yielding assets like Bitcoin, which historically drops up to 20% during similar yen rallies. A key event that could further influence yields and Bitcoin's price is the Bank of Japan meeting on September 17-18.