Bitcoin Market Now 100x Smaller Than Negative Yield Bond Market

Recent research shows as much as 27% of bonds offer negative yields. The market is now 100x larger than the size of the Bitcoin market.


Bond Market 100X Larger than Bitcoin Market Cap

Bonds have always been a low-risk, low-yield asset. Now, as stock markets still teeter near highs, bonds are back in fashion. But based on Deutsche Bank research, as much as 27% of debt instruments have negative yields.

Gabor Gurbacs, digital asset strategist at Van Eck, noted this yield anomaly.

The global debt market is one of the indicators for a potential crisis in other asset classes. The bond market is immense, holding 100 times more value in comparison to the Bitcoin (BTC) market capitalization.

Gold markets are also much more mature in comparison to BTC. Currently, gold is still near its highest price, at $1,674.52. The asset showed signs of being a safe haven in the past year, though its gains were limited in comparison to BTC.

At the same time, BTC is not showing signs of behaving like a safe-haven asset after the recent sell-off on the markets at the beginning of March. BTC also slid despite the accrued long positions, crashing closer to $8,712.05. The asset managed to hold above $9,000 for only a few days before failing to make a trek to $10,000.

Negative Yields May Boost BTC Appeal for Risk-Seeking Investors

Based on the bond market, BTC may also have a chance of appeal, especially in a case of negative interest rates. Such rates mean large-scale financial players can gain access to significant capital, but they also harm personal finance on a small scale. Bond yield anomalies are also viewed as a sign of expectations for an upcoming recession.

Jimmy Song, BTC proponent, has noted the risk of negative interest…

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