BitMEX Analyst Says Surging Bond Yields Will Trigger Bitcoin ‘Supercycle’

Continued rises in U.S. and Japanese government bond yields are increasing government refinancing costs and adding to fiscal pressure on heavily indebted economies. BitMEX researcher Shang Wu said central banks could weaken their currencies if they adopt easing policies to suppress interest rates, potentially driving capital into Bitcoin, whose supply is capped at 21 million and is harder to dilute through inflation.

Wu’s latest analysis said U.S. and Japanese bond yields are closing in on unsustainable levels, and central banks will ultimately face a choice between allowing debt markets to unravel or accepting currency-depreciation risks through monetary easing. He expects this structural shift to propel Bitcoin into a long-term “supercycle.” The available event data did not disclose specific yields, amounts or the analysis’s publication date.