Bitcoin’s recent all-time high may be linked to ongoing issues in the Japanese bond market, possibly signaling BTC’s growing recognition as a hedge against instability in the traditional financial (TradFi) system.

Bitcoin’s (BTC) price rose to a new all-time high of $112,000 on May 22, before retracing to change hands above $109,700 at the time of writing on May 26, Cointelegraph data shows.

While some attributed the rally to geopolitical developments, including US President Donald Trump’s announcement of Russia–Ukraine ceasefire talks on May 19, macroeconomic factors appear to be playing a larger role, according to market analysts.

BTC/USD, 1-year chart. Source: CointelegraphJapan bonds hit yield record

Bitwise’s head of European research, André Dragosch, pointed to growing concerns around Japan’s sovereign credit outlook, highlighting a spike in the country’s long-term bond yields.

Japan 30-year LSEG government bonds yield. Source: Cointelegraph/TradingView

The 30-year yield on Japanese bonds reached a new all-time high of 3.185% on May 20, 2025, before retreating to 3.115% on May 23, TradingView data shows.

Related: $1M Bitcoin by 2030: Big names predict massive debt-driven BTC rally

Government bonds are typically considered safe-haven assets. But when yields rise sharply, it often signals investor concerns about fiscal sustainability and repayment risk. Japan’s debt-to-GDP ratio exceeds 250%, compared to Germany’s 62%, yet both countries had 30-year bond yields near 3.1% on May 21, noted The Kobeissi Letter.

“Because yields are increasing, sustainability becomes more of an issue, meaning credit risk increases, meaning yields increase even more,” Dragosch said. “And so you end up in this kind of fiscal debt doom loop.”

Dragosch said the growing volatility in Japan’s bond market could be prompting some institutional investors to reconsider Bitcoin’s role as a hedge against sovereign default risk.

“This is now affecting other bond markets, especially the US Treasury market,” Dragosch added.

Source: The Kobeissi Letter

Related: Crypto, NFTs are a lifeboat in the sinking fiat system: Finance Redefined

Sovereign risk drives crypto appeal

Japan’s bond market instability raises sovereign credit risk concerns, leading to more Bitcoin adoption among TradFi participants, Dragosch told Cointelegraph, adding:

“Bitcoin is an immutable asset. It’s free of counterparty risk. It’s a hedge against sovereign risk and sovereign default.”

“Perceived default risk continues rising, yields continue rising? This is a rough benchmark of why Bitcoin could be heading toward $200,000,” Dragosch said, adding that this remains conditional on continued Bitcoin accumulation by corporations and exchange-traded fund (ETF) holders.

Bitcoin ETF inflows, monthly, all-time chart. Source: Sosovalue

Meanwhile, the US spot Bitcoin ETFs are less than $1.3 billion away from surpassing the monthly inflow record of $6.49 billion from November 2024, Cointelegraph reported on May 23.

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest, May 11 – 17

Pakistan Prime Minister Shehbaz Sharif appointed Pakistan Crypto Council CEO Bilal Bin Saqib as his special assistant on blockchain and crypto.

Saqib’s appointment takes effect immediately under Rule 4(6) of the Rules of Business, 1973. He has been granted the status of minister of state and will serve without salary or official benefits, according to a May 26 report in the English-language local news outlet, Pakistan Observer.

The move follows a series of government initiatives aimed at strengthening Pakistan’s presence in the digital asset space. Just one day prior, Pakistan allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.

In mid-May, Pakistan’s Ministry of Finance also endorsed the creation of a dedicated body to regulate the country’s blockchain-based financial infrastructure. The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing, regulate exchanges, custodians, wallets, tokenized platforms, stablecoins and decentralized finance applications.

Related: Pakistan eyes crypto legal framework to boost foreign investment

Saqib named special blockchain assistant

Saqib is a graduate of the London School of Economics in the United Kingdom and received the title of Member of the Most Excellent Order of the British Empire from King Charles III. He currently leads the Pakistan Crypto Council, where he appointed former Binance CEO Changpeng “CZ” Zhao as an adviser. He was also named in the Forbes 30 under 30 list.

As a special assistant to the prime minister, Saqib will be tasked with drafting Financial Action Task Force (FATF)-compliant crypto regulations, launching state-backed Bitcoin (BTC) mining projects, and overseeing blockchain integration in governance, land records and finance. He will not receive a salary, perks or privileges, according to Pakistan Observer.

Related: Pakistan moves to regulate cryptocurrency, CBDCs as legal tender

Pakistan investing in crypto

Pakistan is diving headfirst into the crypto industry. In late April, the Donald Trump-backed World Liberty Financial has signed a Letter of Intent with the Pakistan Crypto Council to accelerate crypto adoption in the country, one of the industry’s fastest-growing markets.

Pakistani regulators recently proposed a regulatory framework for digital assets that is compliance-focused and in line with rules laid out by the FATF. Pakistan’s Federal Investigation Agency (FIA) Director Sumera Azam described the framework as a “paradigm shift in how Pakistan views digital finance.” “The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives,” Azam said in April.

Magazine: AI cures blindness, ‘good’ propaganda bots, OpenAI doomsday bunker: AI Eye

Key takeaways:

Solana’s $9.4 billion TVL is a 54% increase since April 7.

Solana’s memecoin daily trading volume has more than doubled since early April. 

A bullish V-shaped recovery pattern projects SOL price to rise toward $300.

Solana’s native token, SOL, surged 86% between April 7 and May 26, following a broader altcoin market rally that also saw Bitcoin hit new all-time highs above $111,000.

Since then, SOL has struggled to break above $180, but onchain and technical data still suggest further gains are in store for the altcoin. Can SOL hit all-time highs above $300?

Solana’s TVL up 54% since April 7

The total value locked (TVL) on the Solana blockchain has increased by over 54% to $9.44 billion on May 26 from multimonth lows of $6.12 billion on April 7. It’s also up by almost 20% over the last 30 days.

Solana TVL. Source: DefiLlama

Data from DefiLlama highlighted that the subsequent increase in TVL was led by Raydium, with a whopping 52% increase in a month. Other major decentralized applications such as Jupiter DEX, Jito liquid staking and Kamino Lending gained 12%, 25% and 11%, respectively.

While Solana ranks as the fifth-largest cryptocurrency by market capitalization, the Solana network is ahead of the other top layer-1 blockchains in terms of TVL, second only to Ethereum. 

Blockchain ranked by TVL, USD. Source: DefiLlama

However, Solana’s $9.5 billion TVL surpasses that of the Ethereum layer-2 ecosystem, which includes Base, Arbitrum and Optimism. It is also larger than BNB Chain’s, which integrates seamlessly with Binance and Trust Wallet.

Solana memecoin market cap gains 65%

The rise in Solana’s TVL mirrors an increase in memecoin market capitalization as prices recovered across the board.

Most Solana-based memecoins have posted double-digit daily losses in the weekly and monthly timeframes, as shown in the figure below. A majority of these tokens are 50% to 80% from local lows. 

Solana-based tokens performance. Source: CoinGecko

As a result, Solana’s collective memecoin market cap increased to $13.4 billion on May 26 from $8.1 billion on April 8, a 65% climb in less than two months.

Related: Solana ‘will make everyone an investor’ — Solana nCMO

This rise in the prices of Solana-based memecoins and market cap was preceded by increasing DEX activity on the layer-1 blockchain.

Memecoin trading volume on Solana. Source: Blockworks Research

The increase in memecoin activity on Solana indicates high network activity and rising usage, positively impacting demand and SOL price. 

SOL’s “V” chart pattern targets all-time highs

SOL’s price action has been painting a V-shaped pattern on the weekly chart since January, as shown below.

A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.

SOL appears to be on a similar trajectory and now trades below a supply-demand zone between $180 and $200. A breakout here would increase the chances of the price rising to the neckline at $252 to complete the V-shaped pattern.

Beyond that, the next target would be the all-time high above $295, representing a 66% increase from the current price.

SOL/USD daily chart. Source: Cointelegraph/TradingView

The relative strength index has increased to 53 at the time of writing from 36 at the end of March, suggesting that bullish momentum is picking up.

As Cointelegraph reported, SOL price could rise by 45% with a decisive bullish breakout above $180 in the coming days.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.