Capital inflows into crypto funds have slowed due to conflicting macroeconomic signals. James Butterfill of CoinShares identifies the US bond market as a more critical factor for Bitcoin than Federal Reserve policy.
Yields on 10-year and 30-year US Treasury bonds have reached their highest levels in over two decades, exceeding 5.3% and 5.7% respectively. September marked the worst month for US government bonds in four years, with 10-year yields rising by over 50 basis points.
Despite the US Treasury doubling its long-term bond buyback program to at least $4 billion per operation in August, the intervention failed to curb rising yields. Investors remain concerned about the stability of US public finances.
Bitcoin's price remains sensitive to fiscal risks and energy costs. While rising yields typically pressure risk assets, Butterfill suggests that if concerns shift toward government fiscal health, Bitcoin may be viewed as an alternative to state-issued currency.
Market volatility recently led to over $1 billion in liquidations in a single day, with long positions accounting for $862 million. Bitcoin prices fluctuated between approximately $80 400 and $83 350 amid geopolitical tensions and interest rate expectations.
