Weak U.S. Treasury auction demand may not signal BTC decline: CryptoSlate

CryptoSlate argued it is difficult to conclude weak demand at this week’s U.S. Treasury auctions would automatically signal a Bitcoin sell-off, even if Treasury yields rise. The U.S. Treasury is set to auction $58 billion in three-year notes at 5:00 p.m. UTC on Aug. 11, $42 billion in 10-year notes on Aug. 12, and $25 billion in 30-year bonds on Aug. 13. Of the planned $125 billion in issuance, about $96.3 billion is for refinancing maturing debt, leaving roughly $28.7 billion in net new borrowing. CryptoSlate said downside concerns for BTC may grow only if rising yields after inflation data, weak auction demand, higher-for-longer rates, and a BTC decline occur at the same time. By contrast, if auction demand remains solid or BTC does not fall, it said the view that higher yields are weighing on BTC would be difficult to sustain. The outlet added that, based on New York Federal Reserve research showing BTC is largely disconnected from monetary and macroeconomic news, the auction results alone should not be used to predict a Bitcoin drop.