Gold & Silver Make New Highs, Japanese Bonds Collapse, and Bitcoin Miners Shutting Off
Breaking News in Finance & Bitcoin - 1/26/2026
Japanese Bond Market Signals Trouble
The 10 Year Yield for Japanese Bonds has reached a multi-decade high of ~2.25%.
With a Debt-to-GDP ratio higher than 200%, rising rates will have severe fiscal consequences for Japan. Ultimately, this will lead to further devaluation of the Yen.
U.S. retail investors tend to be well-aware of the U.S. Debt Problem — but Japan’s is twice as bad. However, the U.S. is on a similar trajectory. The relative insolvency of Japanese bonds is a foreshadowing of what will happen to U.S. Bonds (currently the “global reserve asset.”)
A large reason for the over-indebtedness of Japan is due to demographics. An aging population requires more support from the Government while fewer young people are working and providing a tax base.
In other words, from a Government’s fiscal perspective, they need to spend more while bringing in less revenue.
The difference is ultimately made up with debt and currency debasement.
The United States is on a similar trajectory as Japan in this regard. As the Baby Boomer & Gen X population ages while declining birth rates lead to an insufficient amount of new workers in younger generations — the US population pyramid will soon be “inverted” similarly to present-day Japan.
Mitchell Askew of Blockware provides an in-depth explanation in this clip from ‘Blockware Live’. Tune in every Tuesday & Thursday at 10am EST:
Precious metals have sniffed out the fiscal trouble rocking markets. Year-to-date, Gold is 18% and Silver is up 60%.
In a “normal” market, this type of precious metal price action would signal “risk-off”. However, with equity indices like QQQ and IWM also making new all-time highs (risk-on signal), the signal is trouble with the denominator.
USD is falling.
This is known as a “melt up.”
Bitcoin’s move higher will be next.
As we predicted last week, Bitcoin Mining difficulty is poised for a steep-decline in the wake of the current cold-front sweeping the United States. As of now, a 16% drop in mining difficulty is projected.
This does not mean “Bitcoin is broken”
This is a seasonal effect and mining difficulty will likely rebound quickly in the near future
This is a signal for Bitcoin Miners to diversify their fleet across multiple jurisdictions and grids.
If you only mine at one location and that location is impacted by storms such as this, you may miss out on the opportunity to mine more BTC on a difficulty drop. Blockware has data centers in seven different states, allowing our clients to easily diversify their fleet across multiple locations.
Start mining with Blockware today: https://mining.blockwaresolutions.com/info
