Why does BTC continue to face pressure amid the Japanese bond market turmoil and escalating US-EU trade war?

【BlockBeats】Recently, the risk sentiment in the global financial markets has clearly intensified, with money flocking to defensive assets and moving away from risk assets. U.S. stocks once fell over 2%, and the bond market also came under pressure. The root cause of all this can be traced back to Japan.

This time, Japan has triggered a long-accumulated bombshell. The 10-year government bond yield soared to 2.29%, a new high since 1999. Seemingly insignificant a few percentage points, but behind it is the complete exposure of Japan’s fiscal fragility—government debt has already exceeded 240% of GDP, with a total scale reaching 134.2 trillion yen. Even more painfully, by 2026, debt interest payments alone will consume a quarter of fiscal expenditure. The rising yields directly hit the market’s pain point: how long can Japan’s public finances last? This concern is not only spreading within Japan but has also dragged the global bond market into a whirlpool.

Meanwhile, troubles have arisen on both sides of the Atlantic. The Trump administration has slapped a 10% tariff on eight European countries supporting U.S. control over Greenland, and has even threatened to raise it to 25% on June 1. The EU certainly won’t sit idly by; countermeasures are already on the table. In 2024, the bilateral trade volume between the U.S. and Europe is between $650 billion and $700 billion. With such a large scale, the consequences of escalating conflict are not to be taken lightly. The European Parliament is even considering freezing the trade agreement reached last July.

Against this backdrop, Bitcoin is having a tough time. After falling below $90,000, it briefly rebounded above $97,000, but the upward momentum couldn’t be sustained. The problem is that BTC now behaves more like a high-beta risk asset, extremely sensitive to interest rates, geopolitical tensions, and cross-market volatility, reacting sharply to any wind or wave. Before policy clarity emerges, the crypto market remains in passive defense, with investors focusing on capital preservation, and no one dares to bet on big moves.