Japan’s 30-year government bond yield has soared past 3%, reaching a historical high and triggering significant market ripples worldwide. This surge, attributed to the country’s heavy public debt burden of 234% of its GDP, has fueled concerns about Japan’s fiscal sustainability. While short-term exchange rate fluctuations are traditionally influenced by interest rate differentials, prolonged bond market selling might lead to capital inflows that strengthen the yen in the short term. The U.S. 30-year bond yield also rose above 5% as investors worry about the debt outlook following potential challenges to President Trump’s $3.8 trillion fiscal plan. Amid rising economic pressures, Bitcoin attempted to break the $108,000 mark but ultimately failed. Analysis indicates that current buying activity is primarily driven by strategic investors and purchases from publicly listed Metaplanet. However, concerns remain about a potential slowdown in institutional investment, which could lead to profit-taking. 2023 has seen Bitcoin hold steady despite multiple challenges including soaring bond yields, escalating tariffs, and the risk of stagflation in the U.S. If Bitcoin’s price breaks through historical highs, it might trigger FOMO (fear of missing out) sentiment among retail investors, potentially sparking a new upward trend. It is imperative to monitor the impact of Japan’s bond market volatility on global risk assets closely.