Bitcoin Price Slips as Interest-Rate Expectations Weigh
Bitcoin's price slipped to around $77,200 on Sunday as investors weighed the token's appeal against the lure of dollar-denominated assets. Elevated interest-rate expectations and higher bond yields have made bonds more attractive, dragging Bitcoin down by 0.03% in a slow trading day.
The cryptocurrency has struggled to regain momentum since Saturday, when it ended around $77,300. However, some experts are making the case for adding Bitcoin to portfolios increasingly concentrated around artificial intelligence.
Bitcoin Suisse noted that AI investment is surging, with major U.S. hyperscalers expected to spend more than $800 billion on AI this year and over $1 trillion in 2027. At the same time, U.S. federal debt has crossed $40 trillion, weakening the traditional diversification benefits offered by bonds.
Bitcoin Suisse argued that Bitcoin could provide a different source of portfolio risk rather than act as a conventional safe-haven asset. Its historical modeling showed annualised returns on a traditional portfolio rising from 6.2% without Bitcoin to 7.2% with a 1% allocation funded from bonds, and to 8.6% with a 2.5% allocation.