Wealthy investors are adopting cryptocurrency faster than their financial advisers, with a CoinShares survey showing majorities across seven economies hold digital assets averaging 10% of portfolios. Bitcoin gained 43% in Q3 2024 but faces headwinds from elevated Treasury yields above 5%, while crypto exchange OKX raised additional funding at a $25 billion valuation.
CoinShares suggests rising U.S. debt concerns and elevated Treasury yields could drive Bitcoin's next move as crypto fund inflows slow after attracting $11.1 billion since mid-July. With 10-year yields above 5.3% and 30-year yields at 5.7%, the firm argues bond market dynamics may increasingly influence Bitcoin's appeal as an alternative to government-backed assets.
Bitcoin may be more sensitive to U.S. Treasury market movements than Federal Reserve rate policy, according to CoinShares. With 10-year Treasury yields above 5.3% and 30-year yields above 5.7%, BTC could attract investors seeking alternatives to fiat currencies if rising yields reflect fiscal concerns rather than growth expectations. Digital-asset investment products saw $11.1 billion in net inflows since mid-July, though inflows have recently slowed.