As U.S. Treasury yields inch to 5%, will crypto thrive or dive?
The post As U.S. Treasury yields inch to 5%, will crypto thrive or dive? appeared on BitcoinEthereumNews.com. The cryptocurrency landscape is no stranger to volatility. However, as the U.S. Treasury yields touch a dramatic 16-year zenith, reaching almost 5%, the crypto world stands divided on its implications. Will this wave uplift or capsizes the sturdy ship of digital currency? Especially when significant crypto events like Bitcoin’s halving and ETF approval loom on the horizon. Crypto’s Tryst with High Interest Rates History hasn’t painted a rosy picture when Bitcoin rubs shoulders with soaring interest rates. This year, while Bitcoin has showcased admirable resilience, maintaining its stance amidst escalating rates, it’s been a tug-of-war when it comes to scaling new peaks. The catalysts are waiting in the wings – be it the much-anticipated sanction of the Bitcoin ETF or the Bitcoin halving projected for the latter half of 2024. But these high yields may dampen their sheen, offering an overcast outlook on immediate crypto returns. John Todaro from Needham emphasized this strain between Bitcoin and these burgeoning yields. He believes that while forthcoming events like ETF approval and halving can spike some interest and bolster the price, they aren’t revolutionary. The road to breaking Bitcoin’s all-time high rests on more lenient monetary policies. Federal Reserve’s Chairman, Jerome Powell, didn’t offer much consolation. While he acknowledged the tempering of price pressures, his message was clear: the central bank remains unwavering in its commitment to a 2% inflation goal. Moreover, he hinted at further possible interest rate hikes, dismissing notions of current levels being too exorbitant. Historically, these escalating yields have strained crypto’s potential, pushing investors to reconsider their bets on erratic assets like Bitcoin. The charm of high-yield yet low-risk assets such as government bonds becomes irresistibly enticing. The Storm and the Silver Lining Rob Ginsberg from Wolfe Research is critical of the challenges posed by these rising rates. To…
The post As U.S. Treasury yields inch to 5%, will crypto thrive or dive? appeared on BitcoinEthereumNews.com.
The cryptocurrency landscape is no stranger to volatility. However, as the U.S. Treasury yields touch a dramatic 16-year zenith, reaching almost 5%, the crypto world stands divided on its implications. Will this wave uplift or capsizes the sturdy ship of digital currency? Especially when significant crypto events like Bitcoin’s halving and ETF approval loom on the horizon. Crypto’s Tryst with High Interest Rates History hasn’t painted a rosy picture when Bitcoin rubs shoulders with soaring interest rates. This year, while Bitcoin has showcased admirable resilience, maintaining its stance amidst escalating rates, it’s been a tug-of-war when it comes to scaling new peaks. The catalysts are waiting in the wings – be it the much-anticipated sanction of the Bitcoin ETF or the Bitcoin halving projected for the latter half of 2024. But these high yields may dampen their sheen, offering an overcast outlook on immediate crypto returns. John Todaro from Needham emphasized this strain between Bitcoin and these burgeoning yields. He believes that while forthcoming events like ETF approval and halving can spike some interest and bolster the price, they aren’t revolutionary. The road to breaking Bitcoin’s all-time high rests on more lenient monetary policies. Federal Reserve’s Chairman, Jerome Powell, didn’t offer much consolation. While he acknowledged the tempering of price pressures, his message was clear: the central bank remains unwavering in its commitment to a 2% inflation goal. Moreover, he hinted at further possible interest rate hikes, dismissing notions of current levels being too exorbitant. Historically, these escalating yields have strained crypto’s potential, pushing investors to reconsider their bets on erratic assets like Bitcoin. The charm of high-yield yet low-risk assets such as government bonds becomes irresistibly enticing. The Storm and the Silver Lining Rob Ginsberg from Wolfe Research is critical of the challenges posed by these rising rates. To…
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