ThreeBear
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Bitcoin experienced a tumultuous 24 hours last week, concluding a downward week with a minor rebound on Friday. This followed a surge of negative news and escalating bond yields that drove the price to the $25,000 mark. Dow Jones data revealed that the largest cryptocurrency by market capitalization suffered a decline for the sixth consecutive day, plummeting over 11%. A considerable portion of the speculation surrounding the cryptocurrency's diminishing volatility arose after Musk's Space Exploration Technologies disclosed a $373 million markdown in bitcoin late on Thursday.
While Bitcoin Foundation President Brock Pierce acknowledged that the report might have contributed to the selloff, he also highlighted a factor with potentially more profound ramifications: the increasing U.S. Treasury yields. He pointed out that various other broader market fundamentals, such as the upward trend in interest rates, were in play. Observing the scenario where the government is offering high yields while being aware that it will continue to do so, individuals tend to shift from riskier investments to more secure fund-like investment products. This leads to a question of why one should undertake higher risk.
While Bitcoin Foundation President Brock Pierce acknowledged that the report might have contributed to the selloff, he also highlighted a factor with potentially more profound ramifications: the increasing U.S. Treasury yields. He pointed out that various other broader market fundamentals, such as the upward trend in interest rates, were in play. Observing the scenario where the government is offering high yields while being aware that it will continue to do so, individuals tend to shift from riskier investments to more secure fund-like investment products. This leads to a question of why one should undertake higher risk.
