Bitcoin price is being driven higher by a new set of bullish catalysts.
Bitcoin (BTC) rallied 6% on July 26 as it flirted with the $68,000 resistance level. Interestingly, this movement coincided with increased buying pressure on US Treasurys, as the US 5-year yield dropped to its lowest level since March 2024. Similarly, gold, considered the world’s largest reserve asset, rose 1.4% on July 26, approaching the $2,400 mark.
Bitcoin’s gains might seem counterintuitive given the increased investor appetite for fixed-income securities and gold, but the answer lies in the performance of tech stocks and the real estate market.
Part of the increased demand for US Treasurys can be attributed to the US personal consumption expenditure (PCE) price index, which rose 2.5% in May compared to the previous year, aligning with analysts’ expectations. The report, released on July 26, indicated that personal income increased by 0.2% from the previous month, slightly below the 0.4% market expectation. In short, the data favored interest rate cuts by the US Federal Reserve (Fed).
