As changes in US monetary policy continue, more institutional investors appear to be stacking BTC.
Bitcoin (BTC) reached another new all-time high last Saturday, March 13th, with its passage over $61,680. However, BTC was unable to maintain levels over $60K for the rest of the week. It slid briefly below $54K on Tuesday and has since recovered to nearly $58K at press time.
A number of analysts attribute the short spike above $60K to the passage of the so-called ‘American Rescue Plan’ on March 10th. The bill included plans to distribute roughly $1.9 trillion in stimulus payments across the United States economy. Officials at the US Federal Reserve have expressed that they expect to keep interest rates close to zero until at least 2024. Both factors have caused concern that USD inflation is in the relatively near future.
According to Coindesk, concerns about inflation were ignited by a marked increase in the 10-year Treasury note yield. The figure surpassed 1.75% for the first time since January 2020, two months before the pandemic began. While higher yields on long-term U.S. Treasuries can signal an increase in investor confidence, they can also be a signal of concern over rising inflation.
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