Bitcoin approaches $65,000 as softer economic data reduces Fed rate hike expectations and U.S. Treasuries out-yield carry trades.
Macro & Markets ·
Bitcoin moved toward $65,000 on Thursday following softer economic data that reduced expectations for a September rate hike from the Federal Reserve. Spot trading volume remained near multi-year lows during the price advance.
The move occurred as U.S. Treasury yields exceeded returns available through the carry trade—a condition described as occurring only a second time on record. Softer economic readings shifted market pricing away from near-term Fed tightening, reducing the cost of holding assets that benefit from lower interest rates.
The convergence of these factors—easing rate hike bets and the relative attractiveness of Treasuries—created conditions supporting Bitcoin's advance. What remains unclear is whether the price movement will hold or reverse if economic data firms or Fed officials signal renewed hawkishness.