Potential Bitcoin Gains May Rise Amid US Treasury Activity and Increased Central Bank Gold Holdings
The post Potential Bitcoin Gains May Rise Amid US Treasury Activity and Increased Central Bank Gold Holdings appeared on BitcoinEthereumNews.com.
Recent shifts in the financial landscape indicate a potential surge in Bitcoin prices, driven by significant movements in US Treasurys and a noticeable increase in gold allocations by central banks. A surge in US Treasury funds, coupled with a drop in foreign holdings, signals a possible shift towards BTC as a hedge against traditional assets. “The current wave of macroeconomic changes reflects on Bitcoin’s price trajectory,” stated an analyst from COINOTAG, emphasizing the correlation between gold and digital currencies. Sustained inflows into US Treasurys and increasing gold reserves could pave the way for Bitcoin’s next rally, highlighting its growing role in the global financial landscape. US Treasury Inflows and Their Impact on Bitcoin Prices The global financial tides are shifting significantly, and Bitcoin (BTC) price could greatly benefit from it. Recent data indicates that US Treasury funds saw $19 billion in net inflows last week, exceeding the pandemic peak of $14 billion, with the 4-week moving average rising to $7 billion—the highest since March 2023. The 30-year US Treasury yield fell by 30 basis points from its April peak, indicating a rise in bond prices as investors are willing to accept lower returns in exchange for the safety of these bonds. This surge in demand for Treasurys as a safe-haven asset boosts market liquidity and stability while lowering US borrowing costs. However, foreign central banks have pivoted, cutting Treasury holdings to 23% of US government debt, a 22-year low. This suggests that while private investors were driving inflows, foreign central banks are stepping back, possibly due to ongoing tariff disputes with the US. The trend further shows that gold’s share of global reserves has surged to 18%, a 26-year high, up 8% since 2015, with countries like China doubling their gold reserves to 7.1% since 2023. This global de-dollarization trend…
Filed under: News - @ April 28, 2025 11:26 pm