BitGo sees higher real yields weighing on bitcoin near term
BTGO•BitGo's market analysis says higher real yields are pressuring bitcoin near term, while record debt strengthens its longer-term investment case. It says real returns near 3% raise the hurdle for bitcoin, and estimates Ledger-related losses at $86 million to $102 million.
1. Yields and bitcoin
BitGo's market analysis sees higher real yields pressuring bitcoin near term, while record debt strengthens its longer-term investment case. Real returns near 3% raise the hurdle for bitcoin, which pays no direct yield.
2. Tokenized Treasury settlement
Tokenized Treasuries can reduce idle capital through faster settlement and immediate collateral use, though interoperability between ledgers remains unresolved. BNY's October 13 announcement detailed a Citadel Securities triparty repo using a tokenized U.S. Treasury that settled within minutes rather than T+1.
3. Custody risks
Ledger-related losses are estimated at $86 million to $102 million, highlighting single-seed custody risks. Multisignature wallets can limit exposure to compromised devices.
