As the US 20-year bond auction attracted little interest, Bitcoin achieved a fresh all-time high over $111,800.

Treasury rates across the 10-, 20- and 30-year notes rose after the poor bond auction.

The S&P 500 and BTC dropped momentarily as yields surged, but the leading cryptocurrency rapidly rebuilt its losses.

Rebounding from a little decline, Bitcoin (BTC) reached a new all-time high on Thursday over $111,800. Weak demand at the US Treasury's 20-year bond auction caused the spike in yields beyond 5%, maybe directing investor interest toward alternative assets like Bitcoin.

As US bond auction disappoints investors, Bitcoin achieves all-time high over $111,800.


On Wednesday, Bitcoin stole front stage, rising to a fresh all-time high of $109,800 and igniting good feeling on the crypto market. With a rise of more than 4%, the top asset rose beyond $111,800 on Thursday, therefore attaining a second record high within 24 hours.

Driven perhaps by short-term profit-taking by investors, the new advance over the $111,800 barrier follows a small fall to $106,000 earlier in the day.

Recent bond market events, especially the $16 billion US Treasury bond auction on Wednesday, may have helped Bitcoin surge.

According to The Kobeissi Letters, investors seeking reduced prices pushed demand for the 20-year bond offering low, which resulted in yields over the 5.1% level, the second time a Treasury auction has caused such a surge.

Moody's latest downgrading of the US credit rating further drove pressure on the 10- and 30-year Treasury rates, which rose to 4.58% and 5.08%, respectively.

The thirty-year yield of Japan likewise jumped significantly to an all-time high of 3.19% before averaging 3.15%. As yields typically move inversely to prices, the increase in yields shows poor demand for government bonds. This has heightened worries among players in the global market about the declining attractiveness of government debt in view of growing inflation and economic instability.

In its most recent analysis, KKR & Co. underlined that government bonds are no longer providing consistent safe havens during market downturns, therefore creating concern among conventional investors. The company stated that the problem should be considered as worldwide rather than just US-related.

Investors could therefore be shifting from conventional safe havens to alternative safe havens.

The S&P 500 dropped 1.61%, shedding 95 points on Wednesday, thereby underlining the impact the growing bond rates have had on the larger conventional market. Although this has made equities investors apprehensive, it appears to be fueling the surge in Bitcoin and reinforcing its status as a substitute safe-haven asset during difficult economic times.

The ascent of Bitcoin to fresh all-time highs points to conventional investors pouring money into the asset. Reflecting a capital influx of more than $27 billion since the start of May, this is typified by its realized cap rising over $912.61 billion. Based on SoSoValue statistics, investors have also pushed net inflows of more than $8.01 billion into US spot Bitcoin ETFs during last five weeks.

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