With the US Treasury planning to issue 31 trillion USD in bonds in 2025, higher yields are anticipated, increasing the opportunity cost of holding non-yielding assets like Bitcoin and Ethereum. This situation could tighten liquidity and make cryptocurrencies less attractive.
If foreign demand for US debt declines, yields might rise further, leading to a stronger dollar. This could suppress crypto demand as USD-denominated purchases would become pricier for overseas investors, although Bitcoin’s finite supply could maintain interest.
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