CoinShares said in an Oct. 8 report that digital asset funds have taken in about $11.1 billion in cumulative inflows since mid-July, though inflows slowed sharply this week. At the same time, U.S. Treasury yields continued to climb, with the 10-year rising above 5.3% and the 30-year reaching 5.7%, both near multi-decade highs. After weaker-than-expected September jobs data, the market-implied probability of an October rate hike fell to 23% from 71% three weeks earlier. CoinShares argued that the bond market may become a more important driver than Federal Reserve policy. If rising long-term yields reflect concerns about U.S. fiscal sustainability rather than economic growth, Bitcoin could be seen more as an alternative to government-issued money. The firm added that fund flow data has not yet clearly reflected that view, making flows a key indicator to watch in the coming weeks.
CoinShares said in an Oct. 8 report that digital asset funds have seen about $11.1 billion in cumulative inflows since mid-July, but inflows slowed markedly this week.
At the same time, the yield on the U.S. 10-year Treasury rose above 5.3%, while the 30-year yield reached 5.7%. Both are close to multi-decade highs.
Following weaker-than-expected September jobs data, the market-implied probability of an October rate hike dropped to 23% from 71% three weeks earlier.
Bond market seen as a bigger driver
CoinShares said the bond market could become a more important driver than Federal Reserve policy.
According to the report, if the rise in long-term yields reflects concern over U.S. fiscal sustainability more than economic growth, Bitcoin may increasingly be viewed as an alternative to government-issued money.
The firm added that fund flows have not yet clearly reflected that argument, leaving fund flow data as a key indicator to watch over the next few weeks.
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