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Peter Davis

An writer at FOMOdrive

  • Sep 25, 2023
  • 3 min read

Bitcoin under pressure from rising US Treasury yields

The strengthening of the US dollar and the decrease in risky assets have put Bitcoin under pressure.

The increasing yields of US government bonds have made Bitcoin less appealing.

The chart's technical analysis suggests the potential for a return to an upward trend.

For the past six weeks, there has been a steady exodus of money from crypto funds.

MicroStrategy has acquired an extra 5,445 Bitcoin (BTC).

CoinShares reported that investments in crypto funds dropped by $9 million last week, making it the sixth consecutive week and nine out of the last ten weeks that funds have been withdrawn. Specifically, investments in Bitcoin decreased by $6 million, Ethereum by $2 million, and funds that allow shorting Bitcoin decreased by $3 million.

Trading volumes for the week were significantly lower than usual, at $820 million, compared to the yearly average of $1.3 billion. Investors seem to be more selective when it comes to altcoins, with XRP and Solana receiving $0.7 million and $0.3 million respectively, and Litecoin receiving $0.5 million, according to CoinShares.

CoinDesk has observed that the increase in US government bond yields has diminished the appeal of Bitcoin. Since the start of the third quarter, the S&P 500 stock index has dropped by 3%, while the world's first cryptocurrency has seen a decrease of 14%.

According to IntoTheBlock, the relative stability of digital gold is due to the anticipation of a spot Bitcoin ETF launch and the transfer of compensation payments to Mt.Gox clients. Network data also indicates that hodlers are continuing to accumulate coins.

ABMCrypto notes that, according to the NVT, aSORP and CDD metrics, there is a lack of bearish activity. The technical chart suggests that there is potential for a return to positive dynamics following a period of consolidation.

SmithAmundsen believes that, despite the optimism surrounding Bitcoin in October, the possibility of a government shutdown on October 2nd is weighing down risky assets. Markets are currently indicating a 70% chance of a shutdown.

Michael Saylor, the founder of MicroStrategy, announced that the company had acquired an additional 5,445 Bitcoin, bringing their total to 158,245 BTC, valued at approximately $4.68 billion (at an average price of $29,582).

Arkham claims that Coinbase has a large portion of the Bitcoin market supply, with approximately 1 million BTC, which is equivalent to 5% of the total.

Despite pressure from US authorities on the crypto industry, CoinShares is launching a division in the US to collaborate with hedge funds.

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