With the yield on the10-year U.S. Treasury Note rebounding to nearly its year-to-date (YTD) high on Friday (March 12), Bitcoin seems in trouble, but one man might be able to help Bitcoin to stage a recovery and possibly reach a new all-time high (ATH).
At 06:22 UTC on March 12, Holger Zschaepitz, Senior Editor at the Economic and Financial desk of the German daily Die Welt and its Sunday edition Welt am Sonntag, posted the following market update:
Well, since then the yield on the 10-year U.S. Treasury Note has gone up further, currently (as of 13:57 UTC) at 1.598%, according to data by MarketWatch.
This rebounding of the 10-year Treasury yield comes one day after U.S. President Joe Biden signed into law the $1.9 trillion dollar covid relief bill that the U.S. House of Representatives passed on Wednesday (March 10).
A report by Reuters published on Wednesday (March 10) talked about the positive correlation that we have seen tis year between U.S. Treasury yields and the U.S. Dollar Index (DXY):
“The dollar index has closely tracked a surge in Treasury yields this year, both because higher yields increase the currency’s appeal and as the bond rout shook investor confidence, spurring demand for safe-haven assets.“
That positive correlation seems to be in place today, with the U.S. dollar index currently (as of 13:48 UTC) up 0.48%:
Higher bond yields decrease the attractiveness of risk-on assets such as Bitcoin and stocks, which might at least partly explain why Bitcoin is currently (as of 14:12 UTC) down 2.17% on the day, trading around $55,466, while in pre-market trading, according to CNBC, S&P 500 futures and Nasdaq 100 futures are currently down 038% and 1.52% respectively.
But fear not, dear Bitcoin HODler, for one man might be able to help Bitcoin reverse today’s losses and possibly even stage a rally that could take the Bitcoin price to a new ATH one year after “Black Thursday” (12 March 2020), the day on which Bitcoin and other cryptoasset suffered losses of 50% or more against the U.S. dollar.
At 13:06 UTC on March 12, ), Michael J. Saylor, Co-Founder, Chairman, and Chief Executive Officer of Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR), disclosed that his company had bought another 262 BTC for its corporate treasury:
According to data by TradingView, as of 14:23 UTC on March 12, on crypto exchange Bitstamp, BTC-USD is trading around $55,850.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
