Bitcoin, the leading cryptocurrency, broke new records by rising above $11,000 in last week’s attacks.
This new ATH is encouraging investors and markets, but there is a lot of speculation about the source of the records.
While some analysts believe that President Donald Trump’s decision to launch a ceasefire talk between Russia and Ukraine is declining, 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 an ongoing issue in the Japanese bond market.
Noting the increased risk of Japanese government bonds, Dragosh 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 shelter assets, but sharp increases in yields usually show investors’ concerns about the financial sustainability and the country’s ability to repay debt.
At this point, instability in the Japanese bond market raised concerns about credit risk and encouraged the adoption of Bitcoin among Tradfi participants.
Because Bitcoin is an unchanging asset. There is no counterparty risk. This is a hedge against sovereign risk and sovereign default. ”
The Bitwise executive ultimately added that Bitcoin prices could reach $200,000 in the long term as concerns about the risk of sovereign bonds in Japan and other countries continue to rise.
*This is not investment advice.
