Bitcoin’s Wild Ride: Will It Crash to $70K? Find Out Now! 🚀💸

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What to know:

  • In a twist of fate, Japan’s twenty-year government bond yield has shot up to heights unseen since 2008, whispering sweet nothings of risk aversion into the ears of traders.
  • With the rise of these yields and the Bank of Japan possibly tightening its grip, traders are eyeing a rather gloomy target of $70,000 for Bitcoin in the not-so-distant future.
  • The swirling storm of geopolitical and economic uncertainty, a tariff trade war that feels like a never-ending soap opera, and the Federal Reserve’s cautious dance around interest rate cuts in 2025 are all contributing to this potential Bitcoin nosedive.

Ah, the crypto bulls, those brave souls, may want to strap in tight as Japan’s 20-year government bond yield has soared to heights not seen since the days of yore, back in 2008. This surge has historically sent risk assets like Bitcoin (BTC) running for the hills.

Last week, the Japanese Government Bond (JGB) yield climbed to a staggering 2.265%, a level that would make even the most seasoned investors raise an eyebrow, all while inflationary pressures loom like a dark cloud overhead.

BREAKING: Japan’s 20-Year Government Bond Yield rises to its highest level since 2008.

Japan’s economy is seeing generational changes.

— The Kobeissi Letter (@KobeissiLetter) March 10, 2025

These conditions echo the tumultuous days of August 2024, when the yen flexed its muscles, leading to a global sell-off that swept through equities and Bitcoin alike, as CoinDesk so aptly reported.

Now, with bond yields on the rise and a cocktail of geopolitical and economic uncertainties brewing, traders are fretting over the possibility of a significant correction in BTC. Higher yields suggest that the Bank of Japan might just raise interest rates to tame inflation or manage its hefty public debt.

Rising yields in Japan often signal a broader global economic uncertainty, tightening financial conditions, and a stronger yen. This, in turn, diminishes the allure of carry trades, where investors borrow in yen to chase after higher-yielding assets like BTC. Talk about a buzzkill! 😅

Thus, traders are setting their sights on a low of $70,000 for Bitcoin in the coming weeks, all while navigating the choppy waters of macroeconomic jitters, an ongoing tariff trade war, and a distinct lack of market catalysts following the recent U.S. presidential elections.

“We believe that the geopolitical and economic uncertainty is causing institutions to pare down their crypto holdings, and Bitcoin could very well drop to the $70-80k range in the coming weeks,” mused Jeff Mei, Chief Operating Officer at BTSE, in a Telegram message to CoinDesk.

“Only when this tariff war ends and the Fed resumes cutting rates will top cryptocurrencies resume trending towards previous all-time highs,” Mei added, reflecting the growing apprehension about the impact of U.S. trade policies and the Federal Reserve’s cautious stance on interest rate cuts in 2025.

Meanwhile, Augustine Fan, Head of Insights at SignalPlus, painted a rather grim technical picture: “Price action has turned technically very negative, and the high realized volatility has worsened the BTC risk-adjusted profile, with few (if any) immediate positive catalysts on the horizon.”

Fan’s comments align with a CoinDesk analysis on Sunday, which noted that BTC is testing the 200-day simple moving average (SMA), and a close below it could spell disaster, breaking a strong support trendline. Buckle up, folks! 🎢

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2025-03-10 12:12