The leading cryptocurrency Bitcoin (BTC) broke new records by rising above $11,000 with an attack last week.
While this new ATH excites investors and the market, there are many speculations about the source of the record.
While some analysts attribute the decline to US President Donald Trump's decision to begin ceasefire talks between Russia and Ukraine, others attribute it to increased corporate demand and macroeconomic factors.
André Dragosch, Head of European Research at Bitwise, argued that the recent rally was due to ongoing problems in the Japanese bond market.
Pointing out that risks in Japanese government bonds have increased, Dragosch noted that the 30-year yield on government bonds reached an all-time high of 3.185% on May 20, 2025.
“Government bonds are often considered safe haven assets. But when yields rise sharply, it usually signals investor concerns about fiscal sustainability and the country’s ability to repay its debts.
At this point, instability in Japan’s bond market has increased credit risk concerns and led to greater Bitcoin adoption among TradFi participants.
Because Bitcoin is an immutable asset. It is free from counterparty risk. It is a hedge against sovereign risk and sovereign default.”
The Bitwise executive finally added that if the risk concerns in sovereign bonds of Japan and other countries continue to increase, the Bitcoin price could reach $200,000 in the long term.
*This is not investment advice.
