Global financial markets are showing a tendency to avoid risk amid escalating geopolitical tensions, negatively impacting Bitcoin’s dynamics. Despite attempts by the cryptocurrency to hold its ground, its price remains under pressure and is trading below the $90,000 mark.
This is reported by Business • Media
Rising Yields on Japanese Bonds and New U.S. Tariffs
According to analysts at QCP Capital, the yield on Japan’s ten-year government bonds has risen to 2.29%, the highest level since 1999. This spike has raised concerns about the sustainability of Japan’s finances, where public debt already exceeds 240% of GDP. At the same time, the United States announced the imposition of new tariffs of 10% against eight European countries that did not support American control over Greenland. These tariffs are set to take effect on February 1 and could rise to 25% by summer. In response, the European Union has threatened to suspend the ratification of a trade agreement made in July.
Impact on the Crypto Market and Bitcoin’s Prospects
Experts at QCP Capital note that amid a general decline in interest in risk assets, Bitcoin is not exhibiting the characteristics of a “safe haven.” Instead, it is reacting like a highly volatile asset, remaining very sensitive to changes in interest rates and political instability. Currently, the price of the first cryptocurrency is fluctuating around the $89,000 mark.
“Until clear political signals emerge, cryptocurrencies are likely to remain reactive rather than directional. For now, this is a capital preservation market, not one of confidence,” QCP Capital concluded.
Previously, CryptoQuant noted that new large players (“whales”) have already established control over the Bitcoin market, which is also affecting its current dynamics.