Bond Yields Soar, Trapping Bitcoin in Sideways Movement
Long-term bond yields in major economies have reached their highest levels since the 2008 financial crisis. Japan's 10-year government bond yield surged to 3% for the first time since 1996, while the 30-year JGB yield topped a record 4.18%. The 10-year US bond yield also rose to a new multi-year high and stands at 4.78%.
Industry commentators such as Arthur Hayes have argued that the Federal Reserve will eventually use its Foreign and International Monetary Authorities (FIMA) repo facility to create new dollar liquidity, which is why he recommends positioning in Bitcoin (BTC), gold, and crypto. Treasury Secretary Scott Bessent hinted at the future use of the FIMA facility in August.
Despite this, Bitcoin has been trading sideways near the $78,000 mark following a minor corrective decline from its morning high close to $79,000. The current spot price is trapped between a thick patch of resistance between $76,000-$82,000 range as the key battleground for the coming weeks.