The cryptocurrency market is facing fresh macroeconomic challenges as Japan and the United States experience rising inflation and economic uncertainty.
Rising bond yields in both countries, particularly in Japan where the 10-Year Bond Yield reached 2.83%, a level unseen in over 20 years, and in the US where it climbed to 4.68%, its highest level since August 2007, indicate that investors are becoming increasingly risk-averse.
Historical data shows a consistent pattern of rising bond yields preceding declining Bitcoin performance, while falling bond yields accompanying recoveries. The correlation between crypto markets and bond yields has now weakened further to -0.14, its steepest negative reading yet.