Crypto Regains Strength Despite Inflation Pressures and High Yields
Bitcoin held steady above $77,000 on Wednesday (May 20), as investors cautiously weighed signs of progress in peace negotiations between the US and Iran. The world's largest cryptocurrency was last up 0.4% at $77,175.4 per BTC at 10:15 a.m. London time.
Earlier this week, Bitcoin briefly touched around $76,000 after losing momentum from last week's surge above $82,000. Market sentiment improved slightly after US President Donald Trump and Vice President JD Vance expressed optimism about diplomatic talks with Iran. Trump said the conflict with Iran could end "very quickly" if negotiations are successful, while Vance added that the US remains "ready to fight" if a deal fails.
Oil prices also eased slightly, with Brent remaining above $110 per barrel, amid hopes for de-escalation. A significant drop in oil could help quell inflation concerns, which have recently weighed on speculative assets including crypto and technology stocks.
Despite this, Bitcoin is still struggling to regain ground after its sharp decline from $82,000. Previous gains fueled by optimism about institutional adoption and crypto regulation in the US have been tempered by soaring global bond yields and persistent inflation concerns. The 10-year US Treasury yield is now at 4.687%, its highest since January 2025, while the 30-year yield has touched 5.198%, a level last seen in 2007. These rising yields tend to dampen interest in speculative assets as investors shift to safer instruments.
Investors are also holding back ahead of Nvidia's earnings report due this Wednesday, which is considered a test of sentiment for the artificial intelligence-driven rally that has powered the broader market so far this year.
Altcoins were mostly flat. Ethereum rose 0.7% to $2,127, XRP edged up 0.66% to $1.36, Solana and Cardano each gained around 0.5%, while Polygon gained 0.8%. (Arl)
Source: Newsmaker.id
