Las cryptocurrencies decrease in general means and Bitcoin It is near US$26,000, about to break its support zone. In the last 24 hours, the leading cryptocurrency fell 0.6% to $26,288. while, Ethereum It works out to US$1,580.
Bitcoin: what are the factors that force its price
1. Delay in approval of spot exchange-traded funds (ETFs)
2. The rebound in the performance of US treasury bonds causing a reduction in risk appetite.
3. It ceases to be a refuge from inflation.
BTC: how the rise in US Treasury bonds will impact
The recent increase in Treasury bond accounting 10 years old, they encouraged him to play 16 years long. On Friday, the yield on these bonds exceeded 4.5% for the first time in more than a decade, reflecting the scenario of interest rates The yield on the 2-year bond rose more than 2 basis points, to 5.142%, hovering around levels last reached in 2006.
Loss Treasure troves considered no risk, because they are supported by the United States Government. The 10-year yield is therefore considered a benchmark risk-free rate of return against which the returns of other assets are compared.
The data clearly shows this reduced risk appetite. The risk premium of variable rent, The difference between the S&P 500 earnings yield and the 10-year US Treasury bond yield fell to -0.6, the lowest level since 2009, according to TradingView data.
Also, the S&P 500 accumulated a cumulative decline of nearly 3% so far this quarter. For his part, the bitcoin, which often requires doing this index as a reference, is close to signing some losses greater than 10% between July and September. she worse performance on bitcoin This is explained because, in addition to its greater risk, some experts consider it a main indicator of the performance of equity markets.
“Bitcoin is a risky asset that does not generate returns. Thus, it will be negatively affected by a high risk-free rate of DOLLARS due to portfolio rebalancing,” said Alex McFarlane, co-founder of Keyring Network. According to this expert, “the idea that we can continue to ignore market rates and sell BTC as an orthogonal part of the portfolio is not will increase unless BTC can offer a risk free rate something that cannot be done, unlike ‘proof-of-stake’ tokens, such as Ethereum).
BTC: why it is no longer a refuge against inflation
Last May, S&P said in a report that, contrary to market belief, it was impossible to prove that the bitcoin a good one home to inflation. “The 2-year breakeven inflation rate moved into negative territory during the pandemic, when the yield on Treasury Inflation Protection Securities (TIPS) exceeded the yield on Treasury Inflation Protection Securities (TIPS). Treasury bonds. The historical correlation between the daily returns of the S&P Broad Digital Market Index (S&P BDMI) and the indices of inflation expectations is low, about 0.10,” said the manager.