- The 20-year performance of US Treasuries has been a thorn in the side, causing traditional asset players to look towards Bitcoin
- BTC volatility has decreased and long-term holders are unwilling to withdraw
Bitcoins [BTC] The growth in recent days may have made the hearts of market players happy. However, according to IntoTheBlock, the performance of the king coin has also influenced the macroeconomic landscape, especially in the US.
How many Worth 1,10,100 BTC today?
No bond can break the king’s coin
IntoTheBlock, specifically in a Medium post published on October 20 focused about the US bond crash. The post also looked at the effect on Bitcoin’s liquidity.
US bonds, popularly known as Treasury bonds, are fixed-rate government bonds offered to citizens with a term of 20 to 30 years. According to the crypto market insight provider, bonds are currently witnessing the biggest sell-off in their history. Moreover, the 20-year performance is currently down 19.14%.
Source: IntoTheBlock
As a result of the disappointing performance of these securities, hundreds of billions of dollars are now suffering unrealized losses. In addition, the US debt profile rose to $604 billion last month due to bond depreciation. Concluding its view on the effect on the US economy, IntoTheBlock explained:
“This creates structural problems for the economy because the interest the government pays on its debt continues to rise with the size of their debt.”
Meanwhile, the bonds’ loss appears to be a gain for Bitcoin, as Wall Street veterans tend to be planning on traditional assets are looking towards cryptocurrency. This was also evident from the digital asset investment report of October 16.
Earlier this week, CoinShares reported that investment products around Bitcoin rose for the third week in a row. This increase generated $260 million in premium revenue on a Year-To-Date (YTD) basis.
The said valuation means that more investors are confident about BTC’s performance in the coming months, especially when it comes to investments altcoins were largely ignored. However, the attention paid to Bitcoin did not result in an increase in registered fees.
Lower costs, less volatility and growing faith
At the time of writing, fees recorded by the Bitcoin blockchain had fallen 293% over the past seven days. This means that transaction volume was lower compared to the previous week.
In terms of volatility, BTC has been less volatile than bonds over the past 30 days, despite its previous recognition as a highly volatile asset. However, there are specific reasons for the stability Bitcoin has enjoyed a run of late. One of these is the increasing optimism in the market that a Bitcoin spot ETF would soon be available approved.
Source: IntoTheBlock
Another factor is the determination of the coin’s long-term holders. At the time of writing, approximately 80% of Bitcoin holders have held Bitcoin for at least six months. If this trend continues as Bitcoin’s halving approaches, it’s likely we’ll see BTC at a new high in a few months.
Read Bitcoins [BTC] Price prediction 2024-2025
IntoTheBlock concluded that the fall of bonds signals a possible crack in the traditional investment sector. While it admitted that the Fed could come to the sector’s rescue, it also mentioned that the move could be to Bitcoin’s benefit.
“This is likely one of the key drivers for Bitcoin’s recent outperformance. As the likelihood increases that the proverbial money printer will start up again, Bitcoin’s scarcity is being sought out by more and more investors in a flight to quality.”