Recent trends suggest Bitcoin (BTC) could be impacted by changes in the bond market, particularly the Japanese Yen carry trade and rising yields. Experts believe these dynamics will influence US dollar liquidity and impact Bitcoin prices. 2024 saw Japan heavily utilize a yen-carry trade as they faced concerns about government bonds, resulting in increased yields and investor interest in alternative assets like gold, BTC, and other risk-taking investments. The current Japanese bond market weakness is expected to drive more capital towards the Yen, potentially weakening the US dollar. As a result, investors might shift money from USD into other assets, including stocks, gold, and Bitcoin. This could further amplify Bitcoin’s potential for price increases if these trends continue. Analysts speculate that this trend may contribute to the US dollar devaluing, making imports more expensive while potentially easing debt burden. Federal Reserve Governor Stephen Miran’s call for a 50bps Fed rate cut further indicates a possible shift towards devaluing the USD for easier debt repayment. This dynamic could ultimately lead to increased risk-on assets and drive liquidity into cryptocurrencies like Bitcoin. However, some analysts expect significant price volatility in the coming weeks, especially as macro headwinds remain a factor.