As Bitcoin Approaches Golden Cross, Treasury Yields Worry Seems Overblown

Wednesday, 23 October 2024, 07:40

As Bitcoin approaches a significant golden cross, concerns about rising Treasury yields appear overhyped. Analysts suggest that the uptick in yields aligns with historical patterns in non-recessionary rate cuts. This perspective implies that the current climate might not be bearish for risk assets like Bitcoin.
Coindesk
As Bitcoin Approaches Golden Cross, Treasury Yields Worry Seems Overblown

Understanding the Golden Cross in Bitcoin

Bitcoin is currently approaching a crucial golden cross, a technical indicator generated when the short-term moving average surpasses the long-term moving average. This pattern often signals a bullish trend or potential price increases.

Rising Treasury Yields: Analyzing the Impacts

Recent increases in Treasury yields have raised eyebrows among investors. However, experts from TS Lombard indicate that this rise is consistent with the Federal Reserve's previous rate cuts, which typically do not precede recessions.

  • Golden Cross in Bitcoin often heralds price growth.
  • Rising Treasury yields might not be as bearish for risk assets.
  • Expectations of further rates cuts add complexity to market movements.

Market Sentiment and Risk Assets

Markets often react quickly to Federal Reserve policies, and while increasing yields indicate higher borrowing costs, historical data suggests that risk assets can thrive in similar economic conditions.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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