Bitcoin holds near $78,000 as global bond yields reach multi-decade highs

Bitcoin held near $78,000 as global bond yields reached multi-decade highs. Global long-term bond yields reached their highest level since the 2008 financial crisis. Japan's 10-year government bond yield reached 3% on Tuesday, its highest level since 1996. Japan's 30-year government bond yield exceeded a record 4.18%. The 10-year US bond yield reached a multi-year high of 4.78%. The bond sell-off followed Scott Bessent's announcement that the maximum size of US debt buyback transactions would increase to $4 billion from September. Some commentators compared the measure with a form of yield curve control. The development renewed attention on the debasement narrative followed by Bitcoin and precious metal investors. Arthur Hayes has argued that the Federal Reserve could eventually use its Foreign and International Monetary Authorities repo facility. The facility could allow Japan's Finance ministry to borrow dollars against its Treasury holdings and sell them for yen. Hayes said the mechanism would create new dollar liquidity and recommended Bitcoin, gold and crypto. Scott Bessent hinted at future use of the facility in August. Robin Brooks said Japan had faced a bond market crisis in which its currency fell as government bond yields rose. Bitcoin declined slightly from a morning high near $79,000 and then traded sideways. Resistance between Bitcoin's spot price and $86,000 has slowed its upside momentum. The recent trading range was $76,000 to $82,000. S&P 500 futures fell 0.3% on Tuesday and the index hovered around 7,660. Oil prices rose more than 2%, with WTI near $88 per barrel and Brent above $92. The article linked the oil move to renewed US-Iran fighting, strikes, tanker incidents in the Strait of Hormuz, and comments from President Donald Trump.