- Bitcoin hit a new all-time high above $111,800 after weak demand in the US 20-year bond auction pushed Treasury yields higher.
- Investors are turning to Bitcoin as a safer alternative amid growing concerns over government debt.
The US Treasury’s $16 billion 20-year bond auction this week was met with lackluster demand. Investors bid lower prices, which drove the yield above 5.1%—only the second time yields on a 20-year Treasury sale have spiked this high. The shock extended to the 10- and 30-year notes as well, with yields climbing to 4.58% and 5.08%, respectively.
The bond selloff created brief ripples across the markets. Bitcoin dipped to $106,000 and the S&P 500 slid 1.61%, shedding 95 points. But unlike equities, BTC quickly rebounded, gaining over 4% in 24 hours and notching two fresh all-time highs—first $109,800, then $111,800 by Thursday.
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Investors Shift Focus to Bitcoin as a Safe Haven
According to analysts, rising yields reflect a deeper mistrust in long-term government debt. Moody’s recent downgrade of the US credit outlook and similar signals from global markets like Japan have only reinforced these concerns. KKR & Co. noted in a recent report that government bonds are no longer viewed as reliable safe havens during market volatility.
This shift in sentiment appears to be driving capital toward Bitcoin. The digital asset’s realized market capitalization surpassed $912.61 billion, marking over $27 billion in inflows since early May. Spot Bitcoin ETFs in the US have also seen net inflows of $8.01 billion in just five weeks, per SoSoValue.
Decoupling from Traditional Markets
Bitcoin’s recent performance highlights a growing divergence from traditional equities. Over the past week, BTC is up more than 7%, while the S&P 500 fell by 0.43%. This decoupling strengthens Bitcoin’s narrative as a hedge against economic uncertainty and inflation.
As bond demand falls, Bitcoin emerges as a digital safe haven amid rising economic uncertainty.
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