Fixed-income investors are in a "panic" as government securities, once seen as low-risk, begin to crack, according to BitMEX researcher Shang Wu. Rising government bond yields signal a coming “structural” shift that will create a Bitcoin “supercycle” of rising prices, as investors flee debasing assets for one that cannot be inflated, according to Shang Wu, a senior research analyst at crypto exchange BitMEX. The yield on the 30-year US Treasury broke past 5.14% on Tuesday, while the Bank of Japan’s 10-year government bond yield touched 2.8%, Wu said. These yields are unsustainable in the long-term and will force governments to choose between debasing their currencies and a “sovereign debt collapse,” Wu said. Bond yields for US and Japanese government debt from April 2024 to May 2026. BitMEX “Central banks are backed into a corner. They must choose between a sovereign debt collapse and debasing their currencies,” Wu said. According to the analyst: The analysis comes as the US national debt crosses $39 trillion, and growing geopolitical tensions threaten to boost government spending, while the ongoing war in Iran causes a surge in energy prices and a corresponding inflationary spike. Related: Bitcoin bounces as Trump prepares to announce ‘negotiated’ Iran deal