CoinShares: Bitcoin's Rise Depends on Financial Instability

As U.S. long-term Treasury yields reach their highest levels in over 20 years, analysts suggest that Bitcoin's future upward momentum may stem more from concerns about U.S. fiscal health than from the Federal Reserve's interest rate policies. In a report on the 8th, CoinShares diagnosed that movements in the U.S. bond market are a key variable in determining Bitcoin's price. The yield on U.S. 10-year Treasury bonds has surpassed 5.3%, while the 30-year yield has reached 5.7%. Although the U.S. Treasury has expanded its bond repurchase program, it has not been able to prevent rising interest rates. U.S. Treasury Secretary Scott Vessenet identified the primary cause of rising Treasury yields as the increase in international oil prices. Generally, rising Treasury yields put pressure on risk assets; however, if this stems from a lack of confidence in fiscal sustainability, Bitcoin may be viewed as an alternative to government-issued currency. CoinShares emphasized that for Bitcoin to rise, the inflow of investment funds must resume, and it is crucial to analyze whether investors choose Bitcoin as a means to respond to U.S. fiscal instability.

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