Bitcoin bull case grows as U.S. bond market volatility sinks to lowest since 2021

Source: CryptoNewsNet Original Title: Bitcoin bull case grows as U.S. bond market volatility sinks to lowest since 2021 Original Link: Bitcoin’s BTC $96,612.29 10% rally since the start of the year has analysts predicting an advance into six figures for the first time since mid-November. The outlook gains credence as U.S. Treasury bonds, the bedrock of global finance, lose volatility and settle into their calmest state since 2021.

The U.S. Treasury market is said to be of outstanding credit quality with an extremely low risk of default. The debt is widely used as collateral in everything from loans to derivatives — underpinning much of the world’s financial plumbing.

When Treasury prices move wildly, it tightens credit and disincentivizes risk-taking across the economy and financial markets, leading to caution in stock and cryptocurrency markets. In contrast, steadier bond prices ease credit creation, prompting investors to allocate more capital to riskier assets.