Rising Japanese Yields Shake Crypto Bulls’ Confidence

Crypto bulls are facing fresh challenges. Japan’s 20-year bond yield hit 2.265%, its highest level since 2008. This move usually signals investors pulling away from risky assets, and crypto bulls are watching closely. A stronger yen makes carry trades less attractive, which affects capital inflows into cryptocurrencies. For crypto bulls, this environment is historically bearish and signals heightened volatility ahead.

BTC Nearing Critical Levels Worries Crypto Bulls

 Bitcoin is testing its 200-day simple moving average. A break below it may spark steeper declines. Crypto bulls are eyeing the $70,000 support level. Traders expect this zone could be tested in the coming weeks. The lack of strong catalysts has left crypto bulls hesitant. Without momentum, price action could remain negative in the near term.

Geopolitical Risk Adds Pressure on Crypto Bulls

Tariff wars and uncertain global politics are hitting risk sentiment. Crypto bulls are concerned about capital flight and profit-taking. Institutions appear to be reducing their exposure to crypto assets. Bitcoin has already dropped roughly 25% from its record high. Other major tokens are also losing traction in this risk-off environment.

Fed’s Delay on Rate Cuts Adds to Crypto Bulls’ Woes

The Federal Reserve has paused rate cuts, adding pressure to risk markets. Crypto bulls were hoping for looser policy in early 2025. Recent job market data and inflation fears have delayed these hopes. Until rate cuts resume, crypto bulls may struggle to regain bullish momentum. Bitcoin is now stuck in a consolidation phase, lacking a clear breakout signal.

Experts Warn Crypto Bulls of Short-Term Headwinds

 BTSE COO Jeff Mei warns that Bitcoin could drop to $70,000-$80,000 soon. He blames the ongoing trade war and macro risks. Crypto bulls had expected new highs post-U.S. election but are facing reality. Technical indicators show weakening momentum, and realized volatility is high. Augustine Fan from SignalPlus sees few positive catalysts in the near term.

Long-Term Outlook Still Optimistic for Crypto Bulls

Despite short-term turbulence, some crypto bulls remain hopeful. Bitcoin adoption is growing globally, and institutional interest is rising. Regulatory clarity in the U.S. could also support a recovery later in 2025. Market corrections are part of any maturing asset class. Crypto bulls are focusing on fundamentals and waiting for the right entry point.