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Reasons Behind Bitcoin’s Continued Growth Revealed
A drop in the yield of 10-year U.S. Treasury bonds below 4% and growing interest from large investors in high-risk assets have supported Bitcoin’s rise, according to analysts at 10x Research.
In addition, investors’ expectations of an imminent interest rate cut by the U.S. Federal Reserve have strengthened. Stock exchanges and cryptocurrency markets interpreted the decline in Treasury yields as a sign of weakening positions for the U.S. dollar. The U.S. Dollar Index (DXY) fell, and part of the capital shifted into digital assets, 10x Research noted.
In recent days, capital inflows into spot Bitcoin ETFs have exceeded $600 million, helping stabilize Bitcoin’s price following a period of heightened volatility. According to analysts, investors are once again viewing Bitcoin as a diversification tool, especially amid limited economic data caused by the partial shutdown of U.S. government agencies.
Recession risks in the U.S. are decreasing, which may boost interest in riskier assets, including cryptocurrencies. The decline in yields on traditional market instruments is creating favorable conditions for a renewed bullish momentum in the Bitcoin market, experts at 10x Research believe.
Earlier, analysts at CryptoQuant reported that at the late stage of the bull market, the fate of the crypto market will be determined by so-called “Bitcoin dolphins” — investors holding between 100 and 1,000 BTC in their wallets.
See also: "Wave of ETF Innovation Boosts Institutional Interest in Crypto Assets"
