Bitcoin Spot Volume Dives to 2019 Lows Amid Institutional Bond Rush
Bitcoin's spot trading volume has hit its lowest levels since 2019, sparking concerns about market liquidity. This decline is linked to institutional investors shifting their focus towards cash and government bonds due to a prolonged futures basis inversion.
The three-month futures basis yield for Bitcoin has remained below the U.S. two-year Treasury yield since February, marking only the second such instance in history. This rare inversion is pushing institutions away from Bitcoin and towards more stable investments.
Bitcoin's current price near $63,000 faces resistance at $69,000, while the shallow yet protracted bear market has not confirmed a definitive bottom. Historical trends suggest that previous bear markets extended approximately one-third longer before reaching their lows.