Bitcoin has experienced an 11% increase in price over the past week, approaching the highs seen in July. However, there are concerns about potential trouble for the cryptocurrency due to macroeconomic factors, specifically rising U.S. bond yields. When bond yields are elevated, they become more attractive than risky assets like Bitcoin, potentially prompting investors to move their money out of cryptocurrencies and into bonds. The yield on 10-year U.S. Treasury notes has remained between 4.02% and 4.08%, creating an appealing alternative to crypto assets. Furthermore, stronger-than-expected retail sales and declining jobless claims have raised concerns that the Federal Reserve may not continue cutting interest rates quickly. However, there is still a reasonable chance that the Federal Open Market Committee (FOMC) will cut rates by 25 basis points after its meeting in early November. The recent rate cut by the European Central Bank may also provide a boost to the Bitcoin price in the near term, increasing liquidity across markets and benefiting risk assets like Bitcoin.



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