Mareena
08/07 04:29
Weak USD can boost Bitcoin, but recession fears ca
Weak USD can boost Bitcoin, but recession fears cap gains
A softer US dollar can be supportive for Bitcoin’s price, yet the opposite may occur if investors anticipate an economic slowdown or turn risk-averse for any reason.
For example, between June and September 2024, the DXY declined to 101 from 106, but Bitcoin repeatedly failed to hold above $67,000 and eventually dropped to $53,000 by early September.One way analysts gauge market sentiment is by tracking the ICE BofA High Yield Option-Adjusted Spread, a measure of the extra compensation investors demand over risk-free rates for holding lower-rated corporate bonds.This spread incorporates credit and liquidity risks, making it a widely used proxy for risk appetite. A higher reading signals greater caution in markets, while a lower reading suggests investors are more willing to take on risk.
The spread spiked briefly in August and September 2024, coinciding with a weaker US dollar and falling Bitcoin prices. More recently, it dropped sharply to 2.85 by late July 2025 after peaking at 4.60 in April. This decline matched Bitcoin’s rally from its $74,500 low on April 7, underscoring how improved credit sentiment can support risk assets.The US corporate bond market totals $11.4 trillion in assets, according to SIFMA Research, and its influence on the economy is substantial.A higher spread means companies face greater costs when refinancing existing debt or issuing new bonds. Higher capital costs can lower earnings expectations, potentially triggering a negative feedback loop in investor sentiment and equity valuations.
#HTX Crypto Gifts Carnival Is Live!#Buy Bitcoin’s dip,’ says Eric Trump#Will Bitcoin fall in August?#Whose “child” is ES — Solana or Ethereum?#BTC price hits a new high of $120,000!
3Compartir
Todos los comentarios0Lo más recientePopular
No hay registros