VeChain Nears $0,10, Treasury Yields Rise Could Spell Trouble For Crypto

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Bitcoin is trading steady and still has problems to break through the $60k barrier again.

In the altcoin market VeChain is continuing its parabolic rise as is now nearing $0,10, rising 9% in the past 24 hours. Market commentators fear that rising treasury yields spell trouble for the crypto market.

Boring Bitcoin returns

For a few days now, Bitcoin seems stuck in the $56k to $61k range, which means that trading has shifted from being rather adventurous to a start of another round of boring Bitcoin. At this point it looks like the most famous cryptocurrency is waiting for direction from European and US stock markets before it decisively goes into any direction.

Over in the broader altcoin market, the continued rise of small coin VeChain is gaining even more traction, now attacking the $0,10 range. The supply chain and authenticity focused coin has risen some 34% in the past seven days.

Theta, ranked at position 13 on CoinMarketCap’s top 100, is also rising 20% at the time of writing.

Treasury Yields spiking

Analysts claim that the rise in treasury yields (10 to 30 year bonds in US markets) are the reason why Bitcoin has failed to reclaim $60k.

Market analyst Holger Zschaepitz explained that:

Treasury yields breached more key levels as bond traders boosted bets that the Fed will allow inflation to overshoot as US economy recovers. 10y yields top 1.75% w/ING sees ‘no real barrier’ for move higher.

In essence, because traders can get guaranteed returns from buying bonds again, they flee riskier assets like Bitcoin. Because of this, less institutional investment is coming in, which in tandem causes Bitcoin to lag.

The next few days will prove whether or not this is correct.