Home Fear & Greed Pools Wallets Dictionary Advertise Facebook Twitter Telegram Reddit Youtube
Market Cap:
24h Vol:
Cryptocurrencies: 12450
Markets: 96130
CoinInsight360.com logo CoinInsight360.com logo
ENG
EST
RUS
TUR
DEU
CHI
KOR
ITA
USD
USD
AED
AFN
ALL
AMD
ANG
AOA
ARS
AUD
AWG
AZN
BAM
BBD
BDT
BGN
BHD
BIF
BMD
BND
BOB
BRL
BTN
BWP
BYN
BZD
CAD
CDF
CHF
CLF
CLP
CNH
CNY
COP
CRC
CUC
CUP
CVE
CZK
DJF
DKK
DOP
DZD
EGP
ERN
ETB
EUR
FJD
FKP
GBP
GEL
GHS
GIP
GMD
GNF
GTQ
GYD
HKD
HNL
HRK
HTG
HUF
IDR
ILS
IMP
INR
ISK
JMD
JOD
JPY
KES
KGS
KHR
KMF
KPW
KRW
KWD
KYD
KZT
LAK
LBP
LKR
LRD
LSL
LYD
MAD
MDL
MGA
MKD
MMK
MNT
MOP
MRU
MUR
MVR
MWK
MXN
MYR
MZN
NAD
NGN
NIO
NOK
NPR
NZD
OMR
PAB
PEN
PGK
PHP
PKR
PLN
PYG
QAR
RON
RSD
RUB
RWF
SAR
SBD
SCR
SDG
SEK
SGD
SHP
SLL
SRD
SSP
STD
STN
SVC
SYP
SZL
THB
TJS
TMT
TND
TOP
TRY
TTD
TWD
TZS
UAH
UGX
UYU
UZS
VES
VND
VUV
WST
ZAR
ZMW
ZWL
A company that is changing the way the world mines bitcoin

WallStreet Forex Robot 3.0
Market Cap
24h Vol
12450
Cryptocurrencies
55.82%
Bitcoin Share
Crypto Potato 2025-01-14 11:36:14

Bitcoin to Face More Volatility in the Short Term as US Treasury Yields Surge: Bitfinex Alpha

Bitcoin to Face More Volatility in the Short Term as US Treasury Yields Surge: Bitfinex Alpha

The past few days have seen bitcoin (BTC) briefly trade below the $90,000 range, and analysts say the cryptocurrency faces the risk of more volatility in the short term. Although the narrative paints BTC as resilient, macroeconomic pressures could drag the digital asset to levels not seen in months. A Bitfinex Alpha report has cited tightening financial conditions, the U.S. Federal Reserve signaling fewer rate cuts, and news of the Justice Department’s authorization to liquidate $6.5 billion worth of BTC as factors driving the dump. However, rising U.S. Treasury yields are another important factor. Macroeconomic Pressures The 10-year U.S. Treasury yields have recently climbed to 4.79%, a level not seen in 14 months. The last time yields surged above this 4.6% was in April 2024, when BTC traded close to $73,000. Interestingly, BTC did not touch $73,000 again for seven months. Analysts at Bitfinex noted that the rise in Treasury yields has significant implications for both traditional markets and risk assets. Higher yields lead to an uptick in returns from low-risk government bonds, making them more attractive to institutional and conservative investors. “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,” analysts stated. Additionally, higher yields signal tightening financial conditions, which affects overall liquidity in financial markets. Borrowing becomes more expensive, and capital flowing into speculative assets like cryptocurrencies declines significantly. Diversified institutional investors also rotate their capital out of crypto into bonds to take advantage of safer returns. A More Volatile Environment for BTC Although Treasury yield moves often impact risk assets with a delayed effect, BTC tends to react more quickly compared to equities due to its higher volatility and greater sensitivity to liquidity changes. The S&P 500 reacts within one to three months, while it takes BTC one to two weeks or less in highly speculative market conditions. Bitcoin’s reaction to the recent rise in Treasury yields can be seen in net outflows across U.S. spot Bitcoin exchange-traded funds (ETFs). These funds have recorded negative flows in seven out of the last 12 trading days. While the market’s condition suggests a more volatile environment in the coming weeks, Bitfinex thinks the incoming U.S. administration could limit deeper losses and keep BTC in a strong long-term position. The post Bitcoin to Face More Volatility in the Short Term as US Treasury Yields Surge: Bitfinex Alpha appeared first on CryptoPotato .

Most Read News



Cryptohopper
hardware wallets, hardware , wallets, Crypto Currency, Cryptocurrency hardware wallets, Crypto Apparal, crypto wallet, Cryptocurrency wallets

Market Cap
24h Vol
55.82%
Bitcoin Share
0
Today News
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.