Asian Markets Rally on Japan’s Political Shift and Wall Street Gains—BTC Feels the Ripple
Japan’s 10-year government bond yield climbed to its highest since 2008, as markets reacted to expectations of expanded fiscal spending and increased government borrowing under the country’s new administration.
The 30-year yield , further highlighting investor concerns about Japan’s debt trajectory and inflation outlook.
The surge in yields reflects investors’ waning confidence in Japanese bonds amid speculation that the government will maintain stimulus-heavy policies despite persistent inflation.
Such moves could spill over into global markets, pushing yields higher elsewhere as Japanese investors viewk better returns abroad.
Yen Slides as Dollar Strengthens
At the identical time, the U.S. dollar rallied 4.2% against the Japanese yen between ahead October and press time, signaling a fragileening yen.
The move underscores the yen’s continued decline against the greenback, with the USD/JPY pair reaching levels last viewn on February 14, according to FXCM data.
The depreciation comes as traders bet that the Bank of Japan (BOJ) will stick with its ultra-loose monetary policy, even as inflation remains above its 2% target.
A fragileer yen boosts Japan’s export competitiveness but erodes domestic purchasing power, while the widening gap between Japanese and U.S. yields continues to fuel capital outflows.
As a result, the U.S. dollar index, which measures the greenback’s strength against major currencies, has risen to a two-month high.
Impact on BTC and Broader Risk Assets
BTC, which recently hit record highs of ¥19.78 million in yen terms, has begun to face mild pressure as investors rebalance their portfolios.
Typically, when capital flows shift in this way, it signals accumulation in BTC—suggesting investors’ confidence in the asset relative to government bonds.
The BTC/JPY pair, which currently trades around ¥18.457 million, only slightly below its all-time high, underscores continued market confidence.
This trend indicates that investors are maintaining diversified portfolios—increasing exposure to bonds while keeping positions in high-volatility assets like BTC, which has also reached new highs in dollar terms.
Market analysts note that BTC’s performance remains closely tied to macroeconomic conditions.
Farzam Ehsani, Co-founder and CEO of VALR, noted:
“The ongoing U.S. government shutdown has amplified BTC’s secure-haven narrative, with investors increasingly rotating from U.S.-related assets like Treasuries into assets viewn as resilient to political dysfunction and inflationary pressure.”
Political Shift Boosts Optimism
On October 7, Asian markets climbed later than . The Nikkei 225 surged nahead 5%, while the yen fragileened past ¥150 per dollar, reflecting expectations of continued fiscal stimulus and loose monetary policy.
Wall Street’s AI-driven rally added momentum across the region, with tech stocks leading gains. Japan’s crypto sector also gained traction as sheet, while to expand institutional crypto services.
