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During early Asian trading hours on Thursday, May 22, Bitcoin surged more than 4% from its peak of $109,800 on Wednesday to reach a new all-time high of $111,544.\u00a0<\/p>\n
The milestone follows a brief dip to $106,000 and shows growing investor appetite for alternative assets amid rising macroeconomic uncertainty. The immediate catalyst appears to be the weak demand in the U.S. Treasury\u2019s $16 billion 20-year bond auction on May 21.\u00a0<\/p>\n
Investors pushed for lower prices, which in turn drove bond yields above 5.1%. In bond markets, yields and prices move inversely, meaning that when demand falls, prices drop and yields rise. Bonds are usually more appealing when yields are higher, but when yields rise too quickly because of poor demand, it may be an indication that people are losing faith in government debt.\u00a0<\/p>\n
The ripple effect extended across other maturities, with the 10-year and 30-year U.S. Treasury yields climbing to 4.58% and 5.08%, respectively. Additionally, Japan\u2019s 30-year yield jumped to a record 3.19%. Given that long-term government debt is typically seen as a safe haven in the global bond market, these moves point to a wider sense of unease.<\/p>\n
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\u201cThe real concern isn\u2019t just about U.S. debt\u2014it\u2019s a global issue,\u201d analysts at The Kobeissi Letter wrote<\/a> on an X thread on May 21. \u201cGovernment bonds are no longer reliably playing their safe-haven role during market stress.\u201d As a result, investors appear to be reallocating capital into assets like Bitcoin (BTC), which are increasingly seen as hedges against inflation, fiscal instability, and currency devaluation.<\/p>\n