Trajectory of Bitcoin Price
Related Frightening Development
In recent discussions about Bitcoin's trajectory, Chang, a crypto investor, expressed concerns about macroeconomic factors potentially hindering its upward movement. Chang highlighted instability in bond yields, especially relative to the issuance of U.S. Treasury bonds, as a significant threat. Ongoing US debt concerns and rising bond yields as bond supply increases could pose challenges for various asset classes, including cryptocurrencies like Bitcoin.
A Dangerous Situation for Bitcoin
According to the data, the 10-year Treasury yield, an important indicator, increased by 24 basis points in two weeks and reached 4.55%. Analysts state that a move above 4.7% could bring volatility to the stock markets. Higher bond yields typically lead to higher borrowing costs, reducing the appeal of riskier investments like Bitcoin and technology stocks.
Chang predicts that volatility in returns will continue throughout June, which could lead to a closer correlation between Bitcoin and traditional stocks.
As the yield on two-year Treasury bonds approaches 5%, it becomes increasingly attractive for macro investors to shift funds from riskier assets to safer government bonds that offer stable returns. Goldman Sachs' Peter Oppenheimer highlighted the potential ripple effects across financial markets, emphasizing that rising yields could significantly impact all asset classes.
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