Even while bitcoin (BTC) is still hovering near its all-time highs, fooling around at an increased value but not rising or falling suddenly (perhaps nearing high prices before dropping back down), there is someone who has some concerns about the possibility of avoiding an upsurge in light of what has taken place through the main sectors recently.
Market Analysts Weigh In on Rising Yields
In an interview with CoinDesk, Chang, a trader of crypto options as well as an analyst of markets commented that Bitcoin still remains resilient, despite the recent threats from the outside world. He further said “Compared to the U.S Treasuries issue bond yields have been very unpredictable since they do not seem to attract more attention” Should there be any adverse effect on BTC it would most probably result from yield pressures alongside US dollar index changes.
Matters such as continued US debt worries, the influx of bond supply and the rise of Japanese government bond yields are mainly behind the increase in interest rates on government bonds. TradingView data indicate that for two weeks the percentage yield on the main ten year treasuries has jumped by twenty-four percentage points moving from 4.31% to 4.55%. According to many trusty market analysts, any break beyond the 4.7% mark may introduce some levels of unpredictability into the equities market.
Given all else constant, raised yields equal more expensive borrowing for people and businesses, diminishing the attractiveness of investing in relatively risky assets such as bitcoin and tech stocks. According to Chang, he anticipates yield to stay erratic within June linking bitcoin with stock closely.
BTC Resilience, and Asset Class Pressures
- The two-year treasury yield is almost hitting 5%. Macroeconomic traders can be moved to transfer money from stocks, cryptocurrencies or other sectors of the financial markets that are traditionally riskier, to government bonds when they realize that they can comfortably settle at 5% (which is considered a safe investment).
- The situation is that bond yields have now reached a point where continued increases are likely to put pressure on all asset classes.“we are now at a level of bond yields where rising yields from here are really going to weigh on all asset classes,” Peter Oppenheimer said Thursday on Bloomberg Surveillance.
- FactSet’s consensus predicts that in April the overall PCE price index will have gone up by 2.7% on yearly basis, the same as in March, said the FactSet’s consensus estimate. This would translate into a 0.3% rise from the previous month compared to March’s 0.32% rise. Meanwhile, core PCE (excluding food and energy prices) is expected to spike by 2.8% annually and 0.3% for the month under discussion.
Also Read: Bitcoin’s Potential 4 Catalysts: What Could Drive Its Value Higher?
“The most important main event of the day is PCE. The data the Fed loves. The 2% inflation target they talk about is PCE, not CPI. If the data beats expectations, people will not buy risk assets,” Chang said. In the case of a larger increase in the core figure than expected, interest rate cuts will be less justified and bond yields would further increase.
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