Rising anxieties over increasing U.S. Treasury yields are hitting pressure on worldwide financial markets & perhaps dragging cryptocurrency prices inferior. The cryptocurrency market confronted another day of descending pressure as the nervousness in the traditional markets endures to feast following the recent interest rate point on the 10-year U.S. Treasury bond.
Data from TradingView & Cointelegraph Markets displays that the price of BTC chop to a low at $44,710 late on February 25 before buying at the important provision returned to aid the digital asset recover back above $46,500 but usually, forecasters are looking for $50K to become recognized support before expecting bullish continuance.
Notwithstanding main BTC purchases by Tesla, MicroStrategy, & MassMutual, a mainstream of institutional investors quite has security & tax treatment worries that stop them from investing in BTC, rendering to Galaxy Digital co-president Damien Vanderwilt.
Institutional investment has been an important basis of hopefulness in the cryptocurrency sector in 2021, but its effect in serving BTC spread a market cap of $1 trillion might be exaggerated as new investigation shows that stablecoin whales & retail traders quite hold the greatest buying power.
Interest rate rise puts pressure on GBTC
On February 25, the interest rate for the 10-year U.S. Treasury spiked to 1.52%, its uppermost level in over a year.
Rendering to Chad Steinglass, Head of Trading at CrossTower, the movie ran to the market-wide weight that lacking the “GBTC premium down as low as negative 6% & it closed around negative 2% today.” The analyst realizes interest rate instability as a major source of market instability, as the long end of the curve steepens while the U.S. dollar is pushed lower.
Cryptocurrencies fell under augmented pressures as equity markets worsened throughout the day, perhaps due to a ‘scramble for liquidity’ subsequent from traders pushing up in contradiction of margin calls & demanding to free up cash.’
‘I interpret the GBTC premium collapse as a sign that also retail is dumping to free liquidity, or large fund holders like ARKW are sighted outflows, which reasons them to sell GBTC along with all else.’
Traditional markets are quite choppy
The 10-year Treasury yield pulled back .0582 base points to 1.46 on February 26, marking a 3.82% reduction from its high on a preceding day. This leads to a choppy day in the markets which held the main indices close mixed.
The NASDAQ over the day up 0.56%, improving some of its losses from the 3.5% drop on February 25. Temporarily, the S&P 500 & DOW finished the day in the red, down 0.48% & 1.51% correspondingly.
A popular of the top cryptocurrencies also took on sharp losses on Friday, with the exclusion of Cardano (ADA), which developed the third-ranked cryptocurrency by market cap after its price penniless out to a new all-time high at $1.29. The current enthusiasm for the altcoin seems to be connected to the future ‘Mary’s mainnet presentation scheduled for March 1.
Basic Attention Token has also battled back in contradiction of the market sell-off to pole a 6.43% gain next to the February 23 statement of the upcoming Brave Decentralized Exchange.
Ether price is down 7.19% & trading lower $1,500, while Binance Coin has dropped 8.36% to $224.14
The complete cryptocurrency market cap here & now stands at $1.533 trillion & BTC’s dominance rate is 61.3%.