Bitcoin Slips Amid Rate Pressure, Diversification Case
Bitcoin's price slipped to around $77,200 on Sunday as interest-rate expectations weighed against its potential for portfolio diversification.
The cryptocurrency struggled to regain momentum due to elevated bond yields and expectations of sustained high interest rates, making dollar-denominated assets more appealing.
However, Bitcoin Suisse argued that the token could provide a different source of portfolio risk rather than act as a conventional safe-haven asset. The firm's report showed annualised returns on a traditional portfolio rising from 6.2% without bitcoin to 7.2% with a 1% BTC allocation funded from bonds.
The wider crypto sector faced scrutiny after digital bank Revolut disclosed customer information in response to a fraudulent government request, exposing identity documents and transaction histories.