The increasing instability in traditional financial markets is strengthening Bitcoin's role as a reference macroeconomic asset. With public bond auctions showing weak results in various regions, investors are migrating to digital alternatives as a means of protection and profitability.
Stress in bond markets drives demand for crypto
The recent turbulence in the global bond market has reignited fears among investors. In Japan, the Bank of Japan recorded its worst bond auction since 1987. On another front, the 20-year bond auction in the U.S. closed at 5.104%, up from the previous 4.810%. This scenario has increased interest in perceived safer havens, such as gold, which rose to $3,322. Meanwhile, Bitcoin has once again attracted capital as the so-called 'digital gold.'
Greg Magadini, director of derivatives at Amberdata, highlighted that BTC dominance is increasing as it outperforms altcoins, and pointed out that institutional buying could lead the asset to new price records.
Investors seek yield in digital assets
With global sovereign debt losing attractiveness, capital flow is shifting towards Bitcoin. Dave Sedacca, CFO of Parity Technologies, noted that global chaos has made bonds less interesting, while BTC emerges as a viable allocation option.
Bitcoin enters institutional mainstream
Mike Cahill, CEO of Douro Labs, stated that Bitcoin's surpassing the $110,000 mark reflects a new reality: the asset has ceased to be marginal and is now seen as a macroeconomic instrument. According to him, the combination of ETF inflows, sovereign interest, and limited supply drives institutional demand.
Doug Colkitt, a contributor at Fogo, emphasized that the price of BTC is increasingly tied to capital rotation cycles and liquidity traditionally influencing financial markets.
Banks prepare for the expansion of the stablecoin market
In parallel with Bitcoin's advance, traditional financial institutions are mobilizing to compete in the stablecoin sector. Major banks like JPMorgan, Bank of America, Citigroup, and Wells Fargo are discussing the joint creation of a stable digital asset in response to the rapid evolution of the digital finance sector.
The initiative, articulated through Early Warning Services, relies on legislative advances such as the GENIUS Act, currently in progress in the U.S. Senate. Projections indicate that the stablecoin market could reach up to $3.7 trillion by 2030.
Senator Cynthia Lummis has advocated for the need for a clear regulatory framework to ensure competitiveness in the sector. The expectation is that regulation will further legitimize this asset class and encourage its widespread adoption.
Chart of the Day
Yield of the 30-Year U.S. Treasury Bond. Source: TradingView.
Alpha in Byte Size
Here is a summary of more crypto news to follow today (23):
Over $3.3 billion in Bitcoin and Ethereum options expire today following Bitcoin's historic record
U.S. banking giants, JPMorgan, Bank of America, and others, consider joint launch of stablecoin
Robinhood lists MOODENG and MEW, causing a 20% rise
SEC delays decision on XRP and Litecoin ETFs while TRX staking fund advances
Explanation of Bitcoin's price rise: what comes next for BTC after reaching a record of $111,980?
Worldcoin's WLD token hits a 3-month high after a $135 million investment
ETF inflows hit a 1-month high as Bitcoin establishes a new record
Pre-market overview of crypto stocks
CompanyOn the closing of May 22Pre-market overviewStrategy (MSTR)$399.46$399.72 (+0.07%)Coinbase Global (COIN)$271.95$270.01 (-0.71%)Galaxy Digital (GLXY)$24.46$23.70 (-3.11%)MARA Holdings (MARA)$15.65$15.46 (-1.21%)Riot Platforms (RIOT)$8.94$8.84 (-1.12%)Core Scientific (CORZ)$10.83$10.70 (-1.20%)
Opening rush of the crypto stock market: Google Finance.
The article Bitcoin advances as a new financial benchmark amid pressure in the markets was first seen in BeInCrypto Brazil.
