Soaring Japanese bond yields ignited a rush out of risk assets, hammering bitcoin below key levels as the yen carry trade unwound and volatility ripped through crypto and metals, intensifying fears of deeper rate-driven losses.
Peter Schiff Cites 10-Year JGB at 1.84% and Rising as Bitcoin and Other Crypto Get Killed
Bitcoin’s latest drop drew renewed scrutiny on Dec. 1 as economist and gold advocate Peter Schiff stated on social media platform X that rising Japanese government bond yields were driving investors out of risk assets, a shift he linked to the sharp downturn that pushed bitcoin below $85K.
“The yield on the 10-year JGB is now 1.84% and rising. That’s causing investors to sell risk assets,” Schiff said, adding:
Stock futures are down, and bitcoin and other cryptos are getting killed.
“But gold is now up over $20, trading above $4,240, while silver is surging $1.20, trading above $57.50,” the gold advocate highlighted. Market data showed the 10-year Japanese Government Bond (JGB) yield later reaching 1.88%, its highest since 2008. That move helped unwind the yen carry trade, where investors borrowed low-cost yen to finance positions in higher-yielding assets such as U.S. equities and bitcoin, triggering forced liquidations and a broader risk-off shift.
Schiff, a staunch critic of bitcoin, repeatedly dismisses BTC as a purely speculative bubble that possesses no intrinsic value. He maintains his prediction that its price will eventually crash substantially. He passionately advocates for physical gold as the superior, time-tested store of value. He stressed in another X post: “If you don’t understand why bitcoin is tanking as precious metals are soaring, it’s because you don’t understand either. It’s this ignorance of both that drove bitcoin’s price to $126K, and it’s the same ignorance that will keep HODLers from selling as bitcoin’s gains are lost!”
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The gold advocate also tied the BTC downturn to Strategy Inc. (Nasdaq: MSTR), claiming that rising borrowing costs magnify vulnerabilities in leveraged corporate strategies linked to BTC. “Today is the beginning of the end of MSTR. Saylor was forced to sell stock not to buy bitcoin, but to buy U.S. dollars merely to fund MSTR’s interest and dividend obligations. The stock is broken,” the gold bug wrote.
On Dec. 1, Arthur Hayes also said that bitcoin because the Bank of Japan put a December rate hike in play. He noted that “USDJPY 155-160 makes BOJ hawkish.” Crypto advocates counter that temporary rate shocks do not alter bitcoin’s long-term case rooted in scarcity, portability, and decentralized settlement.
FAQ 🧭
- Why did bitcoin drop below $85K, according to market analysts? Bitcoin’s decline is being linked to rising Japanese government bond yields, which triggered a global risk-off move and forced liquidations across leveraged positions, including crypto.
- How does the jump in Japan’s 10-year JGB yield affect investor portfolios? The yield spike unwound the yen carry trade, pushing investors to exit higher-risk assets like U.S. equities and , thereby amplifying volatility and reducing liquidity.
- Why is Peter Schiff arguing that bitcoin is at heightened risk for deeper losses? Schiff asserts that lacks intrinsic value, believes its rally was driven by investor ignorance, and claims rising rates expose leverage vulnerabilities across crypto-linked entities such as Strategy.
- What is the counterargument from crypto advocates regarding this rate-driven sell-off? Crypto supporters emphasize that temporary macro shocks do not change ’s long-term investment thesis rooted in fixed supply, portability, and decentralized settlement.
Author: Kevin Helms
Source: Bitcoin
Reviewed By: Editorial Team
