Three Factors Supporting the Recovery of Bitcoin and Other Risk Assets Amid Macroeconomic Headwinds

# Bitcoin and Risk Assets Show Recovery Potential Amid Macro Turbulence [New York - Sang Do-seon, Correspondent] Bitcoin and other risk assets have been under pressure due to macroeconomic factors including the Trump tariff wars, concerns of a U.S. recession, and volatility in the bond market. However, emerging variables suggest the possibility of recovery for risk assets, drawing considerable interest. According to Coindesk on the 13th (local time), the first variable supporting the recovery of risk assets is quarter-end rebalancing. Currently, the Nasdaq and S&P 500 indices have fallen by 6% and 4.8% respectively this quarter, while 10-year U.S. Treasury bonds have risen by 5%. As a result, funds that need to maintain specific asset allocation ratios now have a higher proportion of bonds. Therefore, as the quarter-end approaches, there's a strong likelihood of rebalancing by buying stocks and selling bonds. In this process, bond yields might rise and stock prices could increase. Should this scenario unfold, the positive impact is expected to extend to the Bitcoin and cryptocurrency market, which exhibits a high correlation with tech stocks. The second factor is the depreciation of the Yen. Recently, Coindesk analyzed that excessive bullish positions on the Japanese Yen have the potential to stabilize the cryptocurrency market. The Yen, typically classified as a safe-haven asset, could face pressure if U.S. Treasury yields rise due to quarter-end rebalancing. Consequently, the risk-averse sentiment linked to Yen strength and the unwinding of Yen carry trades might come to an end, Coindesk predicted. Additionally, the increase in global liquidity could foster a risk-on sentiment. Investment advisory firm Two Prime, registered with the U.S. Securities and Exchange Commission (SEC), stated, "Global net liquidity is increasing due to the influences of the U.S. and China." Two Prime further noted, "This could partially offset the effects of unwinding Yen trades," adding, "As the U.S. gets better control over interest rates and inflation, it will ease the pressure on bonds from other central banks and slow the rise in borrowing rates for Yen." U.S. interest rates and inflation have already shown a gradual downtrend over the past few months. Nevertheless, the need for caution regarding volatility remains. According to cryptocurrency data platform Amberdata, the Bitcoin options market on the Deribit derivatives exchange detected substantial negative dealer gamma in the $81,000 to $87,000 range. This implies that dealers may adjust their positions based on market direction, potentially amplifying price volatility.