Bitcoin · U.S. Treasury · Japan · Cointelegraph
Soaring bond prices signal 'structural' shift and Bitcoin 'supercycle': Analyst
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Fixed-income investors are in a "panic" as government securities, once seen as low-risk, begin to crack, according to BitMEX researcher Shang Wu.
Key facts
- The yield on the 30-year US Treasury broke past 5.14% on Tuesday, while the Bank of Japan’s 10-year government bond yield touched 2.8%, Wu said
- Bond yields for US and Japanese government debt from April 2024 to May 2026
- The analysis comes as the US national debt crosses $39 trillion, and growing geopolitical tensions threaten to boost government spending, while the ongoing war in Iran causes a surge in energy prices
- However, the $39 trillion US national debt, which continues to grow due to deficit spending, makes it impossible to control inflation by raising interest rates, as the higher rates would also
Summary
Rising government bond yields signal a coming “structural” shift that will create a Bitcoin “supercycle” of rising prices, as investors flee debasing assets for one that cannot be inflated, according to Shang Wu, a senior research analyst at crypto exchange BitMEX. The yield on the 30-year US Treasury broke past 5.14% on Tuesday, while the Bank of Japan’s 10-year government bond yield touched 2.8%, Wu said. These yields are unsustainable in the long-term and will force governments to choose between debasing their currencies and a “sovereign debt collapse,” Wu said. Bond yields for US and Japanese government debt from April 2024 to May 2026.