Tokenized Treasuries hit $15 billion as bitcoin stalls, Fed rate-rise concerns build
Key takeaways
- While bitcoin BTC$80,949.32 remains pinned above $80,000, another interest rate-sensitive corner of the crypto market is booming and may suck capital out of other coins.
- The total value locked in tokenized Treasuries has surged to $15.35 billion, topping the mid-April peak of around $15.10 billion, according to rwa.xyz data.
- This comes as markets price in a higher probability of a Federal Reserve interest-rate hike (yes, an increase in borrowing costs), a stark shift from expectations for rapid rate cuts baked in earlier this year.
Treasuries hit a record $15.35 billion in value locked, as traders weighed the higher chances of a Federal Reserve rate increase and sought yield outside spot crypto.Bitcoin is holding above $80,000 but faces difficulty breaking higher if inflation and real rates keep rising, with miner balance-sheet pressures potentially adding selling on rallies.Market volatility gauges signal short-term calm even as key macro and political events loom, including the U.S. PPI report, the Clarity Act vote and a Trump-Xi summit that could sway risk sentiment.This is an excerpt from CoinDesk newsletter 'Daybook.' Sign up here, if you haven't already.
While bitcoin BTC$80,949.32 remains pinned above $80,000, another interest rate-sensitive corner of the crypto market is booming and may suck capital out of other coins.
The total value locked in tokenized Treasuries has surged to $15.35 billion, topping the mid-April peak of around $15.10 billion, according to rwa.xyz data.