Bitcoin has returned above $80,000, once again demonstrating the cryptocurrency market's dependence on the traditional financial system. The dynamics of digital coins are increasingly influenced by capital availability, liquidity, the bond market situation, and the decisions of American regulators.
Over the past week, bitcoin has risen by more than 23%, and ether has added almost 30%, surpassing $2,500. Against this backdrop, the stocks of cryptocurrency companies have soared sharply. Shares of Canaan, MARA Holdings, and Strive showed double-digit growth. Stocks of Coinbase and Robinhood also strengthened noticeably.
The growth of the cryptocurrency sector coincided with improved sentiment in financial markets. One factor was the US Treasury's plans to increase the volume of reverse repurchases of long-term Treasury bonds. Expectations of liquidity changes supported demand for riskier assets, including cryptocurrencies.
The state of the capital market is especially important for the strategy of Strategy company. The organization is actively increasing its bitcoin reserves by raising funds through the financial market. As long as investors are willing to finance such operations and the cost of capital remains acceptable, the model allows for continued strategic purchases.
Risks increase if conditions in the traditional market deteriorate. Falling stocks, rising borrowing costs, or reduced liquidity could make raising funds more expensive and limit further increases in bitcoin positions.
The connection with traditional finance is also strengthening through stablecoins. The development of digital coins pegged to the dollar is essentially expanding the infrastructure of dollar settlements. Their use for transfers and payments is gradually bringing the cryptocurrency market closer to the global financial system.
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