Bitcoin and Volatility: Impact of Rising US Bond Yields

by Giorgi Kostiuk

2 years ago

Bitcoin's recent dip below $90,000 has raised volatility concerns amid macroeconomic factors. Bitfinex analysts highlight the influence of rising US bond yields and other factors.

Macroeconomic Pressures

The 10-year US Treasury yields have recently climbed to 4.79%, the highest in 14 months. This rise makes holding Bitcoin more challenging for institutional investors, drawing capital into safer assets.

As yields increase, the opportunity cost of holding Bitcoin rises, prompting some institutional investors to rebalance their portfolios away from cryptocurrencies and into safer, yield-generating assets.Bitfinex analysts

A More Volatile Environment for BTC

Bitcoin is more sensitive to liquidity changes than traditional assets, leading to quicker reactions to economic shifts, such as the recent rise in bond yields.

Future Outlook

Despite current challenges, there is hope that the new US administration can prevent deeper losses and support Bitcoin's long-term positions.

The Bitcoin market faces challenges amid changing economic conditions, but analysts remain optimistic about its long-term resilience.

Rewards

More rewards

Discover enhanced rewards on our social media.

Other news

Ninth Circuit Court Rules in Favor of Perplexity's AI Shopping Tools

A federal appeals court has ruled in favor of Perplexity, allowing its AI shopping tools to operate on Amazon, overturning a preliminary injunction that blocked them.

Rajesh Kumar8 hours ago

SanDisk Stock Reclaims 1,400 Level Amid Bullish Predictions

SanDisk stock has reclaimed the 1,400 level, closing at 1,427 after a low of 998 during the July crash, attracting bullish predictions from Wall Street.

Miguel Rodriguez13 hours ago

China's New Digital Payment System Aims to Challenge US Dollar

China is developing a digital payment infrastructure to facilitate cross-border trade without relying on the US dollar, aiming for dedollarization and financial sovereignty.

Luis Flores17 hours ago

Emergence of New Luddite Movement Against AI Data Centers

Tennessee state Rep Justin Pearson has emerged as a leading voice in the New Luddite movement, advocating for moratoriums on data centers and stricter oversight of AI technology.