Rising US Bond Yields Dampen Bitcoin's Uptrend
CryptoNewsTerminal Staff31 May, 2024
Rising US Bond Yields Dampen Bitcoin's Uptrend
Rising US Bond Yields Pose Hurdle to Bitcoin Price Rally A recent analysis from CoinDesk suggests that escalating US bond yields and a robust dollar index (DXY) are casting a shadow over Bitcoin's bullish trajectory. The negative impacts slowing down Bitcoin's ascent are likely due to rising U.S. bond yields and a strong DXY. These factors make it costlier for individuals and businesses to borrow, leading to a decline in risk appetite for investments in risky assets like Bitcoin. [Analyst "Chang" from CoinDesk] noted that "Bitcoin is still in a bullish mode, but there are headwinds coming from the macro side." Goldman Sachs analyst Peter Oppenheimer also weighed in, stating that "the recent surge in U.S. Treasury yields has reached a level that could put pressure on all asset classes." The U.S. 2-year Treasury yield has already approached 5%, a level that could prompt macro traders to shift their focus from risk assets to Treasuries.
