Main takeout:
Bitcoin demand is led by investor macroeconomic fear, not BTC ETF Netflows.
The global bond market volatility is raising the safe appeal of Bitcoin, as interest rate cuts and inflation are transformed into risky assets.
Encryption analysts say investors’ interest in BTC (Bitcoin) is increasingly related to the role of hedge for designated and financial instability.
Recently, ADAM, an independent market analyst in the XPost, is not an institutional investor who purchases SPOT BTC ETFs, but a wide range of macroeconomic changes due to uncertainty caused by economic policies such as inflation, bond market volatility and trade war of the US president.
ADAM emphasized that Bitcoin follows more than 50% since 1Q, consistent with the imposition of new tariffs. This achievement has strengthened Bitcoin’s views with safe assets, while strengthening the designated tension and economic uncertainty. Analysts, such as capital flow, argue that the current bull case is rooted in macroeconomic conditions rather than ETF flow.
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Macrotail Wind affects the demand for bitcoin
Capital Flows, a global macro researcher, pointed out that the ongoing BTC rally reflects a significant increase in credit expansion and changes in bond market epidemiology. The central bank, including the ECB (European Central Bank), began to cut interest rates despite the increase in inflation in the sector, such as the Eurozone service. ECB’s policies can reflect concerns about a wide range of economic tenderness, but the market interprets these movements differently.
For example, the 30 -year interest rate swap in Europe has increased, increasing nominal growth and inflation expectations. Cointelegraph reported that US long -term financial returns also surged. In May, the 30 -year interest rate was 5.15%and the 10 -year interest rate was 4.48%. This “bear steep” of the yield curve generally indicates that the market is priced in more active economic activities, not economic downturn.
In Japan, the bond market stress is also emerging. The 30 -year government bond yield was 3.185%in recent years due to concerns about Japan’s high debt -to -GDP ratio. In combination with US debt prospects and continuous fiscal expansion, investors are increasingly questioning the long -term survival of traditional sovereignty debt as a store of safe value.
In contrast, Bitcoin is attracting attention as a non -sovereign deflation asset. In the United States, easy financial conditions captured by the National Finance Index have encouraged the risk of benefiting Bitcoin. The rise in debt levels and the renewed federal preparations support additional cases of encryption assets.
Thus, these factors emphasize a wider macroscopic story. Bitcoin is emerging as a hedge to instability in the sovereign debt market, as well as inflation and currency. This trend allows you to continue capital to BTC through the current cycle, along with an investment inflow of $ 420 billion.
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This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.