Next Bitcoin buy signal could come from bond market stress
Analysts suggest that Bitcoin buy signals may arise from stress in the bond market, which historically corresponds with Bitcoin cycle bottoms. With U.S. national debt surpassing $37 trillion and the 10-year Treasury yield rising to 4.3%, macroeconomic pressures could favor Bitcoin in Q4. The ICE BofA Option-Adjusted Spread (OAS), which indicates yields investors demand for risky bonds over safe U.S. Treasurys, remains stable, but a spike could suggest market fear and a buying opportunity for Bitcoin. Recent data shows institutional interest remains, as evidenced by Strategy's purchase of 430 BTC for approximately $51.4 million. However, selling pressure is noted from large Bitcoin holders, indicated by a decrease in mega whale addresses. Additionally, nearly 32,000 dormant BTC were shifted in a recent transaction, suggesting potential volatility ahead. Analysts caution that while accumulation may be occurring, a combination of whale selling and dormant coins could lead to short-term price corrections.
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