Rising Bond Yields Spell Trouble for Crypto Market

The crypto market is experiencing fresh macroeconomic pressure due to rising bond yields in Japan and the US. Japan's 10-Year Bond Yield reached 2.83%, while the US 10-Year Yield climbed to 4.68%. These high levels are unprecedented, with Japan's yield not seen since over 20 years ago and the US yield reaching its highest level since August 2007.

The correlation between bond yields and cryptocurrency performance has weakened further, with a reading of -0.14 indicating rising downside pressure on the market. This correlation played out in January and March, with rising bond yields preceding declining Bitcoin prices and falling bond yields accompanied by recoveries.