The gap between the longer and shorter-dated US bonds has widened, the largest since 2021. This development is raising concerns for Bitcoin in 2026.

Key Insights:

• A wider gap signifies increasing long-term yields, which could exert pressure on Bitcoin.
• The sell-off of long bonds in Japan is influencing this trend and pulling US yields upward.

Increased Yield Gap Impact on Bitcoin and Equities

Bitcoin’s market forecast appears increasingly pessimistic, particularly according to David Roberts, the head of fixed income at Nedgroup Investments, who has commented on the global equity landscape.

Analysis of Yield Trends

Roberts expressed to Bloomberg that equities will be adversely affected due to sustained increases in yields, particularly those that mature in the longer term, mostly influenced by Japan’s economic situation.

Recently, Japan’s 30-year bond yield reached a record high, significantly impacting the yields of shorter-term bonds.

Future Outlook for Bitcoin

With rising yields likely reducing the desirability of holding assets like Bitcoin, the cryptocurrency may shorten its price rally, possibly encountering significant challenges to regain the $100,000 mark amidst competing investment opportunities.

This article does not provide investment advice. All investments carry risks, and thorough personal research is recommended before making financial decisions.