Bitcoin faces pressure from yen rally and rising bond yields as carry trade unwind looms

Bitcoin is trading near $77,000-$79,000 as a perfect storm of macro pressures converges on risk assets. Japanese government bond yields have surged to multi-decade highs, the yen is rallying hard against the dollar, and the specter of a massive carry trade unwind has global markets on edge. What’s happening in Japan, and why Bitcoin cares Japan’s 10-year government bond yield has climbed to 3% for the first time since 1996. The 30-year JGB yield has pushed even higher, approaching record levels near 4.18-4.205%. At the same time, the yen has staged a significant rally. The USD/JPY exchange rate has dropped from levels above 160 to around 153.9-154.3, a move that represents a substantial shift in one of the world’s most-traded currency pairs. The Bank of Japan’s policy rate now sits at 1%, the highest since 1995, following a rate hike in June 2026. With the BOJ’s next meeting scheduled for September 17-18, markets are pricing in further tightening. Coordinated currency intervention efforts between the US and Japan have reportedly involved around $96 billion. US Treasury Secretary Scott Bessent has publicly flagged the risks of these interventions and broader fiscal measures aimed at...