Bitcoin Bull Run Faces Exhaustion Risks from Ongoing US Bond Sell-Off

YWmsBELx 980x568

Bitcoin prices printed themselves new record highs all Wednesday, but the cryptocurrency risks finding its potential tipping point against an ongoing US government bonds sell-off. High prices and thin yields on Treasury bonds provided critical support for Bitcoin since the coronavirus-induced global market rout last March. But, against the prospects of higher inflation, yields have surged higher, with the 10-year benchmark yield touching 1.3 percent this week. It was 0.9 percent at the beginning of this year. The yield on the US 10-year government note is rising YTD. Source: US10Y on Its recovery has punctured the gold’s rally. The safe-haven asset declined for the fifth straight day on Wednesday amid reflation trades, pointing that investors anticipate the US economy to recover faster-than-expected and inflation to rise towards the Federal Reserve’s 2 percent target. However… …a rally in US bond yields has done little in offsetting Bitcoin’s bullish bias. The…

Read the original article here