Jason Kim, chief investment officer of the Tokyo-headquartered investment firm Anchor Value, says there’s a lack of institutional traders in South Korea’s crypto market, which elevates the prominence of retail customers in the country who use exchanges more frequently and tend to follow “fear of missing out” trends during bull runs.
Bitcoin, often touted as digital gold, jumped to fresh record highs early Wednesday alongside an uptick in longer-duration U.S. Treasury-bond yields, potentially a sign of looming inflation, according to one expert.
The cryptocurrency printed a new all-time high of $35,751 and the yield on 10-year Treasurys crossed above 1% for the first time since March 2020, according to data provider TradingView. While there is no direct correlation between the two assets, they’re both increasingly linked to investor views on inflation, according to Chris Thomas, head of digital assets at Swissquote Bank.
“The latest rise in yields could be an indication that interest rates may need to rise slightly in the future because the economy is in better shape, and to help control inflation,” Thomas told CoinDesk. “Naturally, if we think there is inflation, then the U.S. dollar will weaken, and all assets priced in USD will naturally strengthen.”
The dollar index, which tracks the greenback’s value against majors, has declined to a fresh 33-month low of 89.25. However, the oversold currency could draw bids if the ascent in Treasury yields gathers pace, since investors might begin to see value in the higher income stream. In that case, bitcoin may have a tough time maintaining its bullish momentum.
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