Macroeconomic Factors Continue to Drive Bitcoin's (BTC) Short-Term Price Volatility

Macroeconomic factors continue to drive bitcoin's (BTC) short-term price volatility as it holds steady above $80,000, with a wave of significant news emerging

The macroeconomic narrative continues to drive bitcoin’s short-term price volatility as it holds steady above $80,000, with a wave of significant news emerging over the past 24 hours.

Still, there’s a risk-off feeling in the air as the divergence between bitcoin and the broader crypto market grows. Bitcoin dominance has surged to 62%, approaching a year-to-date high, and the ether-to-bitcoin (ETH-BTC) ratio has turned negative on a four-year compound annual basis, meaning ETH is underperforming.

Another concerning development is Trump’s trade wars, which are persisting as another factor limiting optimism in the market. Apart from his feud with Canada, there’s also the issue of metal tariffs, prompting retaliatory measures from the European Union.

One of the most intriguing developments comes from Canada, where newly appointed Prime Minister Mark Carney has filed to sell U.S. dollar bonds. Although the size of the sale isn’t yet disclosed, it’s noteworthy that Canada is the sixth-largest holder of U.S. Treasuries, possessing $379 billion as of the end of last quarter. If the sale proceeds, it could exert upward pressure on yields, which is the last thing Trump wants.

The Treasury yield narrative is paramount because roughly $9 trillion worth of U.S. debt is set to mature or require refinancing this year alone. This is one of the pivotal reasons why the U.S. administration is keen on bringing down Treasury yields.

In more immediate news, market participants will be focusing on today’s Consumer Price Index (CPI) report, with risk-asset bulls hoping for a softer inflation reading. The S&P 500 is currently on the brink of correction territory, having declined nearly 10%. If inflation comes in hotter than anticipated, it could subject risk assets to further downside. Stay vigilant!

What to WatchToken EventsConferencesToken TalkBy Shaurya MalwaCall me crazy but I don't think the $BMT is going to end well. CA tweeted 13 mins ago.Dexscreener shows first token launched with that CA 14 hrs ago.10+ scam tokens using same CA.Insiders holding insane amounts of supply.Majority of the volume coming from new wallets.

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