Key results:

• Bitcoins demand is powered by macroeconomic fears of investors, and not just notice BTC ETF Netflows.

• The global variability of the bond market increases the unthreatening reference of Bitcoin, and the reduction of interest rates and growing inflation cause a change in risk assets.

Cryptocurrency analysts claim that the interest of Bitcoin investors (BTC) is increasingly related to the role of geopolitical and financial instability.

IN Last x postAn independent market analyst, Adam, noticed that the main driving force of Bitcoin growth is not institutional investors buying the BTC ETFS spot, but wider macroeconomic changes caused growing popularity, bond market variability and uncertainty caused by economic policy, such as US President Donald Trump.

Adam emphasized that Bitcoin increased by more than 50% from Q1, coinciding with the application of recent tariffs. This performance strengthened the view of bitcoin as a unthreatening resource due to the intensification of geopolitical tensions and economic uncertainty. Analysts such as capital flows claim that the current case of the bull is essentially rooted in macroeconomic conditions, not ETF flows.

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Macro Tailwinds affect the demand of bitcoins

Global macro researcher of capital flows indicated The fact that the ongoing BTC rally reflects a significant escalate in credit expansion and a change in the dynamics of the bond market. Central banks, including the European Central Bank (EBC), began to lower the rates, despite the growing inflation in segments such as euro zone services. Although the ECB policy may reflect the concerns about wider economic softness, the markets interpret these movements differently.

For example, 30-year-old interest rate swaps in Europe have increased, which suggests higher nominal expectations and inflation expectations. Cointelegraph announced that long-term US treasury yields also increased-30-year rates affected 5.15% in May, while the rate of 10 years was 4.48%. This “ceiling” of the performance curve usually indicates that the markets are valued in a more energetic economic activity, not recession.

There is also stress related to the bond market in Japan. The 30-year profit of government bonds has recently reached 3.185%, as a result of fears for high debt ratio to GDP in Japan. Combined with US debt prospects and continuous fiscal expansion, investors are increasingly questioning the long -term profitability of customary sovereign debt as a unthreatening value warehouse.

On the other hand, bitcoins gains on this as a deflancy and deflact resource. In the United States, straightforward financial conditions, captured by the national financial conditions indicator, encouraged to take risks, bringing Bitcoin benefits. Increasing debt levels and the potential of the renovated expansion of the federal balance balance additionally support the matter regarding cryptographic assets.

Therefore, these factors emphasize the wider narrative of macro: Bitcoin appears as a security not only against inflation and currency disorders, but also against instability in sovereign debt markets. This trend, combined with the expected 420 billion dollars of the inflow of investment, can continue to lead capital to BTC in the current cycle.

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This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.