Bitcoin (BTC) remained largely flat near $78,000 on Tuesday as a broad sell-off in global government bonds pushed long-term yields to multi-decade highs.
Japan’s 10-year government bond yield climbed to 3%, reaching its highest level since 1996, while the 30-year Japanese government bond yield moved above a record 4.18%. Meanwhile, the 10-year US Treasury yield rose to a multi-year high of 4.78%.
The surge in bond yields has increased attention on global debt markets and the potential impact of monetary and fiscal policies on risk assets such as Bitcoin and gold.
Japan’s bond market remained at the center of Tuesday’s volatility. The sharp rise in yields comes as investors reassess the outlook for Japanese monetary policy, government finances and the yen.
The developments have also revived discussions around potential currency intervention and liquidity measures involving Japan and the US.
Market commentators have suggested that future use of the Federal Reserve’s Foreign and International Monetary Authorities (FIMA) repo facility could provide dollar liquidity if Japan uses its Treasury holdings to support the yen.
Such a move could potentially increase global dollar liquidity, strengthening the investment case for assets such as Bitcoin and gold.
Despite the global bond market sell-off, Bitcoin continued to trade within a relatively narrow range.
BTC briefly approached $79,000 before retreating and remained around $78,000 at the time of reporting. The cryptocurrency has struggled to build strong upside momentum after its August recovery.
Bitcoin continues to face significant resistance between its current price and the $86,000 area. Market participants are watching the $76,000-$82,000 range as an important battleground for the coming weeks.
Broader risk sentiment also weakened as US-Iran tensions intensified. S&P 500 futures declined around 0.3%, while the index remained near its lowest level since early August.
Oil prices gained more than 2%, with WTI crude trading around $88 per barrel and Brent crude above $92.
The increase was attributed to renewed fighting involving the US and Iran, including strikes and incidents involving tankers in the Strait of Hormuz, alongside comments from US President Donald Trump.
For Bitcoin investors, the combination of elevated bond yields, geopolitical uncertainty and shifting global liquidity conditions could remain a key driver of price action in the weeks ahead.
