U.S. Treasury Market Sees Highest Volatility in Four Months
The U.S. Treasury market is facing significant volatility, which may affect the anticipated recovery of bitcoin (BTC) prices.
- February inflation data was softer than expected, supporting predictions for Federal Reserve interest-rate cuts.
- Analysts forecast a potential price recovery for bitcoin to over $90,000, currently priced around $82,000.
- The Merrill Lynch Option Volatility Estimate Index (MOVE) has risen to 115, marking the highest level since November 6, representing a 38% increase in three weeks.
- Increased volatility in U.S. Treasuries can limit leverage and liquidity, reducing risk-taking in financial markets.
- The MOVE index previously dropped after the Nov. 4 election, contributing to bitcoin's rise from $70,000 to $108,000.
- The peak of the cryptocurrency rally occurred when the MOVE index reached its lowest point in December-January.
