Crypto market update ✍️

Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Let's talk about crypto market. If there’s no clear reason for the market to decline, it can recover quickly. Recently, Bitcoin dropped to around $89,000, but has now bounced back above $96,000. The market sentiment can shift rapidly. Yesterday, everyone was bearish, but today, Bitcoin’s recovery has made many bullish. The flow of capital in and out of riskier assets, like crypto, largely depends on investor sentiment, which can change quickly. For instance, when US government bonds were offering low returns, many investors shifted their money to riskier assets, including crypto and the stock market. Similarly, when these bonds see corrections, capital often flows back into riskier markets, which can trigger a rise in asset prices, including Bitcoin.

Currently, there’s around $17 trillion invested in US bonds, with a significant portion in short-term bonds like the 2-year and 10-year treasuries. As bond yields fluctuate and the market adjusts to new inflation data, the money that’s sitting on the sidelines could flow into the cryptocurrency market. If a large portion of this capital moves into crypto, it could significantly increase the market cap. Bitcoin’s production cost is currently around $89,000, and as long as mining remains profitable, miners are unlikely to sell off in large amounts, which helps stabilize the market. Understanding how these trends work especially the potential flow of funds from the bond market into crypto can give investors an edge in positioning themselves for the future. That's it for today. Thanks & have a good day!!