Analysis: Bitcoin Correlated with Japanese 10-Year Government Bond Yields, Potential BOJ Stability Could Boost Bitcoin

BlockBeats News, January 23rd, Delphi Digital stated in a post that "Bitcoin's price has remained stagnant while gold continues to rise. The reason may lie in Japanese government bonds. Typically, rising yields increase the opportunity cost of holding non-yielding assets, putting pressure on gold. However, when gold and yields rise in tandem, the market is effectively pricing in policy pressures and balance sheet vulnerabilities rather than economic growth."

"The current 10-year Japanese government bond yield is about 3.65 standard deviations above its long-term average. Japanese banks structurally hold long-duration bonds and are deeply exposed to Japanese government bonds in both their assets and collateral."

"Gold is absorbing this pressure, while Bitcoin has a negative correlation with the Japanese 10-year government bond and has struggled relatively as Japanese yields rise over the longer term. If the Bank of Japan intervenes to stabilize the government bond market, the risk premium in gold may ease, providing room for a rebound in Bitcoin."