Reasons for Bitcoin's continued growth have been identified.
The fall in the yield on 10-year US Treasury bonds below 4% and the increased interest of large investors in high-risk assets supported the growth of Bitcoin, according to analysts from 10x Research.
Furthermore, investors' expectations of an imminent Federal Reserve interest rate cut have increased. Stock exchanges and cryptocurrency markets have interpreted the decline in Treasury yields as a sign of the US dollar's weakening position. The dollar index (DXY) has slumped, and some capital has shifted to digital assets, according to 10x Research.
In recent days, capital inflows into spot Bitcoin ETFs have exceeded $600 million, helping stabilize Bitcoin prices after a period of heightened volatility. Analysts say investors have once again begun to view Bitcoin as a diversification tool, especially given the limited economic data available due to the government shutdown in the United States.
The risk of a US recession is fading, which could fuel increased interest in risky assets, including cryptocurrencies. Falling yields on traditional exchange-traded instruments are creating favorable conditions for renewed bullish momentum in the Bitcoin market, according to experts at 10x Research.
Experts from the CryptoQuant platform previously reported that the fate of the crypto market in the late stages of the bull market will be determined by “Bitcoin dolphins”—investors holding between 100 and 1,000 BTC in their wallets.
Source: cryptonews.net
