Last week, Bitcoin (BTC) soared past $11,000, reaching a new all-time high. While some attribute this surge to global events like ceasefire talks between Russia and Ukraine, others point to specific market factors. Bitwise’s André Dragosch believes that Japan’s recent volatility in government bond yields played a significant role. Dragosch argues that escalating risks in Japanese government bonds, particularly the 30-year yield reaching an all-time high of 3.185% on May 20, 2025, signal investor concerns about Japan’s fiscal health and ability to repay its debt obligations. These heightened risks have led to increased Bitcoin adoption among traditional financial institutions (TradFi) as a hedge against sovereign risk. While Bitcoin offers protection against counterparty and sovereign default risk, experts caution that this surge in price is not investment advice. This article will continue exploring how Japan’s bond market dynamics may be impacting the cryptocurrency landscape.