Bitcoin prices ticked higher after falling to as low as $56,260 during the Asia-Pacific session earlier Friday as the bond market cooled down and the 10-year Treasury corrected lower from its 14-month high.

The benchmark cryptocurrency surged 2.25 percent to $58,993.37, leaving the broad crypto market on track to post similar gains ahead of the weekly session close on Sunday. Its move upside appeared almost in line with tech stock futures that too rose against easing bond yields ahead of the New York opening bell.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin is holding support above its 20-day moving average. Source: BTCUSD on

The 10-year US Treasury note’s yield plunged to 1.688 percent after closing the previous session at 1.730 percent, its highest level since January 2020.


Bitcoin Adoption Grows on Anti-Inflation Sentiment

Bitcoin looked choppy on day-to-day timeframes, troubled by bright economic prospects on the one hand and cryptocurrency investors’ woes that interest rates will climb sooner than expected on the other.

Investors have raised their bets on higher inflation as US growth picks up. They believe it could force the Federal Reserve to put brakes on its loose monetary policy. Those concerns led to a sharp sell-off in the government bond market this year, prompting investors to exit overvalued assets like tech stocks and increase exposure in undervalued sectors like energy, banking, and travel.

Bitcoin suffered in the week ending February 28 as the US bonds sold off. Nevertheless, the cryptocurrency’s entry into the balance sheets of many leading corporations, coupled with financial institutions’ makeshift willingness to offer crypto-enabled investment products to their clients, offsets such downside risks.

This week, it was Morgan Stanley that became the latest Bitcoin adopter. The American investment giant added three bitcoin funds to its traditional platform, a move that would enable its wealthy clients to gain exposure in the cryptocurrency market. Meanwhile, according to sources in local media, it reportedly plans to acquire South Korea-based cryptocurrency exchange Bithumb for $2 billion.

Its growing prominence on Wall Street indicates rising fears of inflation. Bitcoin bulls have always projected the cryptocurrency as “digital gold” due to its pre-programmed scarcity that challenges depreciative fiat currencies.

Deutsche Bank Research wrote in its recent report that Bitcoin, now a trillion-dollar asset, has become “too important to ignore.”


As tech stocks lead gains on Wall Street, Bitcoin could tail the trend by repositioning itself for a move above $60,000. The cryptocurrency attempted a similar breakout action last night but failed to hold the level. The weekend session might change that as BTC/USD trades just $1,200 shy of it.