On April 14, the 2-year and 10-year US Treasury yields fell after Bitcoin experienced a strong week, gaining 6.79%. The 10-year yield dropped to 4.40%, influenced by temporary tariff exemptions on tech imports. While lower yields can boost Bitcoin as investors seek riskier assets, ongoing trade tensions create uncertainty. Bitcoin, seen as a hedge against inflation, is facing mixed opinions, especially with recent inflation data showing a decline. Analysts note that Bitcoin is currently positioned well above its 50-week moving average, although resistance levels around $88,000 to $90,000 may pose challenges ahead. The narrowing gap between perpetual futures and spot prices hints at potential bullish momentum, but caution is advised due to previous Market trends.
The US Treasury yields fell on Monday, April 14, as Bitcoin achieved its strongest weekly performance since January. Bitcoin, known for its volatility, gained 6.79% last week. With this rise, many investors wonder if Bitcoin can maintain this upward momentum.
During New York trading, the 10-year Treasury yield dropped by 8.2 basis points to 4.40%, while the 2-year yield fell 8 basis points to 3.88%. These declines were influenced by the announcement of temporary tariff exemptions on electronics, aimed at giving US companies time to adjust their production. However, President Trump reiterated that these exemptions are not permanent.
The decline in Treasury yields can be a mixed blessing for Bitcoin. Lower yields tend to make fixed-income assets less attractive, potentially directing more investment toward riskier assets like Bitcoin. However, uncertainty surrounding the trade policies and temporary exemptions may lead to price swings for Bitcoin.
As an asset viewed by some as a hedge against inflation, Bitcoin is receiving varied opinions. Recent data shows inflation in the US has cooled, with March’s Consumer Price Index (CPI) indicating a decrease from 2.8% in February to 2.4%. This reduction might create a short-term bearish scenario for Bitcoin.
Bitcoin faces significant price hurdles between $88,000 and $90,000. Analysts from Material Indicators believe that Bitcoin remains in a bullish position, staying above its 50-week moving average and quarterly open price of $82,500. A solid weekly close suggests the potential for Bitcoin to avoid revisiting previous lows for a while.
Trading expert Joao Wedson pointed out that the Perpetual-Spot Gap on Binance, an important metric, is shrinking. A narrowing gap often indicates a shift away from bearish sentiment, which could signal a bullish trend for Bitcoin if it flips positive. However, he cautioned that negative gaps did persist during the last bear Market.
In summary, while Bitcoin has shown strength recently, external factors like Treasury yields and inflation data will continue to play a crucial role in determining its short-term price direction.
Consider exploring the ongoing discussions around Bitcoin and related Market dynamics for further insights.
This article does not offer investment advice. Always conduct your research before making any financial decisions.
Tags: Bitcoin, US Treasury yields, inflation, cryptocurrency, Market analysis
What is Bitcoin trading targeted at $90K?
Bitcoin trading at $90K means traders believe the price of Bitcoin will reach this value soon. This target can come from predictions about Market trends, demand, or economic factors like tariffs and Treasury yields.
Why are tariff exemptions important for Bitcoin traders?
Tariff exemptions can lower costs for businesses and boost the economy. When businesses save money, it can lead to more investment in assets like Bitcoin, possibly driving its price higher.
How do US Treasury yields affect Bitcoin prices?
US Treasury yields show how investors feel about the economy. Lower yields can make traditional investments less attractive, pushing some investors to seek higher returns in Bitcoin, which can drive up its price.
What should traders consider when trading Bitcoin?
Traders should look at Market trends, news about the economy, and price charts. Understanding how external factors, like government policies and Market sentiment, can influence Bitcoin prices is crucial.
Is investing in Bitcoin safe?
Investing in Bitcoin can be risky, as prices can change quickly. It’s important for traders to do their research, manage their risk, and only invest money they can afford to lose.