Bitcoin Price Successfully Touches USD 70,000 Early June 2024

Previously, the cryptocurrency with the largest market capitalization, Bitcoin (BTC) continued to experience high price declines, indicating a temporary pause in the bullish market.

However, an analyst expressed concern that recent macroeconomic developments in the United States could hinder Bitcoin's movement to higher levels.

“Bitcoin is still strong, but macro factors are threatening,” said crypto trader and market observer, Chang in an interview, quoted from Coindesk, Monday (3/6/2024).

“Bond yields are very volatile because demand is weak compared to US Treasury issuance. If there is a negative impact on Bitcoin, it is most likely due to yields and the dollar index,” he explained.

US government bond yields rose, mainly due to the country's persistent debt concerns, a flood of bond supply, and a rise in Japanese government bond yields.

The benchmark 10-year Treasury bond yield has risen 24 basis points to 4.55% in two weeks, according to data from charting platform TradingView.

What is considered risky for crypto, is that higher borrowing costs for individuals and companies reduce the attractiveness of investing in relatively risky assets, such as Bitcoin and technology stocks.

Chang said he expects yields to remain volatile in June, confirming a close correlation between Bitcoin and stocks.

The two-year US Treasury yield is already approaching 5%. The ability to lock in a 5% yield on government bonds, which are seen as safe investments, may persuade macro traders to move money out of stocks, cryptocurrencies and other riskier corners of the financial markets.

“We are now at a level in bond yields where rising yields are really going to weigh on all asset classes,” Peter Oppenheimer of Goldman Sachs told Bloomberg Surveillance.