Gareth Soloway: Factors Behind Bitcoin's Bullish Trend Are Interest Rates and Distrust in Fiat Currency

The main variables for Bitcoin's bullish trend have been identified as U.S. Treasury yields and the weakening trust in fiat currency. Gareth Soloway, Chief Market Strategist at Verified Investing, stated that the burden of U.S. debt and interest rates is becoming a key risk for the market, and Bitcoin could play a role similar to digital gold. He assessed that the U.S. debt situation is worsening and that there is a possibility the government may intervene to control the yield curve. Soloway presented the 5% peak of the U.S. 10-year Treasury yield in October 2023 as a baseline, warning that surpassing this level could increase fear among bond markets and institutional investors. He explained that high interest rates do not always act in the same direction for cryptocurrencies, and if the financial system is stable, investors may prefer Treasury bonds. He evaluated that the recent rise in Bitcoin was catalyzed by discussions on yield curve control, indicating that the government recognizes the need for interest rate control. However, he also added that there is a possibility of further interest rate increases. Soloway projected that the weakening of fiat currency could strengthen Bitcoin's dominant role, expressing concern that if the current spending structure and debt flow continue, a situation similar to the Great Depression could occur by 2030.

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