Bitcoin has climbed 11% in the past week and is within range of the highs it saw in July. But there may be trouble on the horizon for the price of Bitcoin when you zoom out to look at macroeconomic factors, said one analyst.
Yuya Hasegawa, a crypto market analyst at Bitbank in Japan, highlighted that rising U.S. bond yields are “a bit of a concern for Bitcoin looking ahead.”
Simply put, when bond yields begin to remain elevated it can make them more appealing than risky assets like Bitcoin. That can lead investors to siphon money out of risky assets, like stocks or cryptocurrency, to redeploy into U.S. bonds.
As of mid-October, the yield on 10-year U.S. Treasury notes has hovered between 4.02% and 4.08%. That’s down slightly from September, when yields climbed as high as 4.3%. But still high enough to create an alluring alternative to risky crypto assets.
And that’s not the only thing giving Hasegawa reason to worry.
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