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Bitcoin Trade With Trump Hit by Rising Yields, Strong US Dollar
Bitcoin’s ability to hold $100K is being suppressed by rising Treasury yields and a stronger dollar. Is the ‘Trump Deal’ Over?
The new year kicked off as markets prepared for President-elect Donald Trump’s inauguration in the White House, and uncertainty gripped global markets as US Treasury yields hit yearly highs and risk assets retreated amid speculation over potential tariffs under the incoming administration
Bitcoin’s Rally Fades
Bitcoin’s brief flirtation with $100,000 quickly fizzled out, with the cryptocurrency posting a negative return of around 6% over the past 30 days, while other digital assets suffered sharper losses. “The correlation between bitcoin and US interest rates has historically been negative,” Eloisa Cadenas, chief innovation officer at Monetae Exchange, told Cointelegraph.
“Markets like Bitcoin and cryptocurrencies rely on available liquidity to drive growth, and high Treasury yields in particular are reducing global liquidity, making traditional instruments like bonds more attractive.
