<\/p>\n
BlackRock warns long-term government bonds have lost their safety role, pushing investors to consider Bitcoin, Ethereum and Solana as alternative risk plays.<\/p>\n
<\/p>\n
BlackRock is telling clients to stop treating government bonds as the automatic safety net in a crisis\u2014a shift with direct implications for how capital rotates into risk assets like Bitcoin (BTC) and Ether (ETH).<\/a>\u200b<\/p>\n In its latest weekly note, the BlackRock Investment Institute warns<\/a> that \u201cbonds no longer provide the same level of portfolio ballast\u201d as fiscal deficits balloon and rates stay higher for longer. Heavier government borrowing and \u201chigher-for-longer\u201d policy have made long-dated sovereigns more vulnerable to abrupt selloffs when \u201cfiscal and trade risks flare up,\u201d the team led by Jean Boivin argues. Instead of cushioning equity drawdowns, spikes in long-term yields are increasingly \u201cmorphing into debt-sustainability worries,\u201d amplifying volatility across assets.<\/p>\n <\/p>\n BlackRock frames the recent moves in rates less as a classic growth\u2011inflation story and more as politics colliding with what it calls \u201cimmutable\u201d constraints, above all the need for foreign buyers to keep absorbing ever-rising debt issuance. When that foreign bid thins, duration ceases to be a hedge and starts behaving like a second source of risk.<\/a>\u200b<\/p>\n Japan has become the pressure point where these abstract risks turn concrete. Ultra\u2011long Japanese government bonds sold off sharply this month, with the 40\u2011year yield briefly pushing above 4%, a level not seen since that maturity was introduced in 2007, as investors reassessed the country\u2019s fiscal risk premium. Against that backdrop, BlackRock says it has been tactically underweight long\u2011term JGBs since 2023 and turned underweight long\u2011term U.S. Treasuries in December 2025, citing both sovereign issuance and an expected wave of corporate bond supply in 2026.<\/a>\u200b<\/p>\n The firm\u2019s takeaway is blunt: in a market where \u201cpolicy shocks\u2014rather than recessions alone\u2014can now be a major driver of bond drawdowns,\u201d the traditional 60\/40 playbook is breaking. What used to be a stabilizer in multi\u2011asset portfolios has become a second, correlated bet on policy discipline.<\/a>\u200b<\/p>\n That breakdown in the bond hedge lands at a moment when major cryptocurrencies are again trading near cycle highs, inviting some allocators to treat them\u2014not Treasuries\u2014as their convex exposure. Bitcoin is changing hands around $88,184 per coin, down roughly 1.2% over the last 24 hours, with a 24\u2011hour trading volume above 43.5B and a market cap near 1.76T. Ethereum trades near $2,953, with about 23.4B in 24\u2011hour turnover, while Ether\u2019s price has slipped about 1\u20131.5% on the day. Solana, meanwhile, is trading around $199.15, essentially flat on the session with a 0.22% drop over the last 24 hours.<\/a><\/p>\n In a world where bonds can no longer be relied upon \u201cfor portfolio safety,\u201d as BlackRock puts it, that backdrop of deep, liquid crypto markets becomes harder for institutions to ignore. The trade\u2011off is starker than the old 60\/40 formula ever admitted: accept duration risk in increasingly politicized sovereign markets, or embrace the explicit volatility of assets like BTC, ETH, and SOL as the place where risk is at least priced, not denied.<\/p>\n <\/p><\/div>\n","protected":false},"excerpt":{"rendered":" BlackRock warns long-term government bonds have lost their safety role, pushing investors to consider Bitcoin, Ethereum and Solana as alternative risk plays. Summary BlackRock says long-term government bonds no longer…<\/p>\n","protected":false},"author":1,"featured_media":2769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=20880"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20880\/revisions"}],"predecessor-version":[{"id":20881,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/20880\/revisions\/20881"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2769"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=20880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=20880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=20880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Bonds Lose Their \u201cBallast\u201d Role<\/h2>\n
Japan As Warning Signal<\/h2>\n
Crypto Steps Into the Vacuum<\/h2>\n