Factors Driving Bitcoin's Uptrend: Inflation, Yields, ETFs, and China

Factors Driving Bitcoin's Uptrend: Inflation, Yields, ETFs, and China

Bitcoin has been on an upward trend in recent months, and several major macro factors are driving this growth. Easing US inflation is one of the key factors. The US Federal Reserve has been raising interest rates to combat inflation. However, recent data shows that inflation is starting to moderate. This has led to speculation that the Fed may soon pivot to a more dovish stance, which would be positive for Bitcoin. Falling US treasury yields are another factor. Treasury yields have been rising in recent years, as the Fed has been raising interest rates. However, yields have started to fall in recent months, as investors become more concerned about the economic outlook. Lower treasury yields make Bitcoin more attractive to investors, as it offers a higher yield with less risk. Inflow of funds into spot Bitcoin ETFs is another factor driving Bitcoin's uptrend. Spot Bitcoin ETFs allow investors to gain exposure to Bitcoin without having to buy and store the cryptocurrency themselves. Several spot Bitcoin ETFs have been launched in recent months, and they have attracted significant inflows from institutional investors. This is a sign that institutional investors are becoming increasingly comfortable with Bitcoin. China's stimulus measures are also providing support for Bitcoin. The Chinese government has been implementing a number of stimulus measures in recent months, in an effort to boost its economy. These measures have led to a weaker Chinese yuan, which has made Bitcoin more attractive to investors in China. Overall, the major macro factors that are driving Bitcoin's uptrend are easing US inflation, falling US treasury yields, inflow of funds into spot Bitcoin ETFs, and China's stimulus measures.