Bitcoin Price Falls Due to Japanese Interest Rate, Not Middle East

The Bitcoin price is currently around $63.000, a drop of 1.5% over the past 24 hours. According to analyst Michaël van de Poppe, this correction has little to do with the geopolitical tensions in the Middle East. The real cause lies elsewhere: in his view, the rising Japanese bond yield is playing a much larger role.

Bitcoin is available at OKX and Bybit.

Japanese interest rates as driver of the correction

Van de Poppe states on X that the recent decline in Bitcoin is directly linked to the rise in Japanese bond yields, also known as the Japanese Yield. When that yield rises, it pulls capital away from risky assets such as crypto worldwide. This effect is now clearly visible in the Bitcoin price.

The chart shows that Bitcoin is currently trading around a critical zone. The analyst indicates that the price must reclaim the $60.876 level in the short term to prevent further downward pressure. Just below that lies a support zone around $58.115, which acts as a last buffer before further declines become realistic.

Recovery expected within one to two weeks

Van de Poppe expects the Japanese bond yield to break within the next one to two weeks. Once that move occurs, he believes it will automatically create room for a positive breakout for Bitcoin. The relationship between the Japanese bond market and risky assets has previously been a factor in sharp price movements in crypto.

Earlier this week, the Bitcoin price traded around $64.000, despite tensions around the Strait of Hormuz. This shows that geopolitics currently has less impact than macroeconomic factors such as interest rate moves in Japan. Likewise, historical patterns for July 2026 were previously cited as a reason for cautious optimism over the longer term.

Whether the expected decline in Japanese interest rates will come quickly enough to keep Bitcoin above critical levels remains to be seen. For now, the price remains vulnerable as long as Japanese yields stay high and investor confidence is under pressure.