Crypto News

Bitcoin’s Long-Term Bullish Outlook Receives Boost As Investors Bet On More Bond-Buying

  • Bitcoin’s long-term bullish outlook may have received a boost from investors’ latest bet on the long-dated Treasury notes.
  • The belief is that the Federal Reserve will start buying long-term U.S. bonds after its next policy meeting in December.
  • The divided outcome of the November 3 elections left investors thinking that the central bank would need to undertake more responsibilities to support the U.S. economy.
  • This is due to the rising number of coronavirus infections, coupled with the U.S. Congress’s inability to pass a second stimulus package.
  • The U.S. economy is facing uncertain times after Treasury Secretary Steven Mnuchin ended some of the Fed’s key emergency lending facilities that were aiding small and medium-sized enterprises.
  • That has left the central bank with no choice but to buy long-term U.S. Treasury notes. Growth in the long-term U.S. Treasurys decreases the yield they offer, meaning investors receive less money when their bond expires.
  • Their towering demand makes inflation-resistant assets such as Bitcoin more attractive to investors. This explains why a yield below 1 percent on the U.S. 10-year Treasury has coincided with a 400 percent price rally in the Bitcoin market.
  • Read the full story here.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

0 Comments
Inline Feedbacks
View all comments
Matt Borelli

Matt Borelli is a staff writer at CoinChapter, covering the daily developments in the cryptocurrency world. He is a Bitcoin enthusiast and proud Dogecoin holder. When not reporting on the latest cryptocurrency news, Matt can be found at the nearest baseball stadium.

Related Crypto News

NYDIG Raises $200 Million From Key Strategic Partners
New York Digital Investment Groups announced that it has raised $200 million from its strategic partners. This includes its...
Mark Cuban Predicts Dogecoin Will ‘Definitely’ Hit $1
Billionaire tech investor and Dallas Mavericks owner Mark Cuban continues to provide a boost to Dogecoin. A week ago...
Ethereum 2.0 Staking Protocol Stakewise Raises $2 Million
Ethereum 2.0 DeFi protocol Stakewise announced a successful $2 million private fundraise ahead of its public launch. The protocol...
Analyst Sees Bitcoin Price Hitting $55,000-56,000; Here’s Why
Bitcoin could reach anywhere between $55,000 and $56,000 in the coming sessions, says Jonny Moe.
Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...

Featured Crypto News

NYDIG Raises $200 Million From Key Strategic Partners
New York Digital Investment Groups announced that it has raised $200 million from its strategic partners. This includes its...
Mark Cuban Predicts Dogecoin Will ‘Definitely’ Hit $1
Billionaire tech investor and Dallas Mavericks owner Mark Cuban continues to provide a boost to Dogecoin. A week ago...
Ethereum 2.0 Staking Protocol Stakewise Raises $2 Million
Ethereum 2.0 DeFi protocol Stakewise announced a successful $2 million private fundraise ahead of its public launch. The protocol...
Analyst Sees Bitcoin Price Hitting $55,000-56,000; Here’s Why
Bitcoin could reach anywhere between $55,000 and $56,000 in the coming sessions, says Jonny Moe.
Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...