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Yesterday, <a href="https://xpertsstudio.com/cryptocurrencies-price-prediction-ripple-<a href="https://xpertsstudio.com/bitcoin-790m-shorts-liquidated-in-24-hours/” title=”Bitcoin: $790M Shorts Liquidated in 24 Hours”>bitcoin-crypto-european-wrap-21-august/” title=”Cryptocurrencies Price Prediction: Ripple, Bitcoin & Crypto – European Wrap 21 August”>cryptocurrencies across the board, including major tokens such as Bitcoin, Ethereum, and XRP, received a much-needed boost.
Today, those gains are continuing, with Bitcoin up another 8.2% in the past 24 hours, Ethereum up another 5%, and XRP up more than a staggering 18%.
But the digital tokens aren’t the only assets seeing their value spike. A number of crypto-related stocks are also seeing significant increases on the back of the crypto momentum. Here’s what you need to know.
What’s happening?
As Fast Companypreviously reported, cryptocurrencies yesterday finally broke out of their months-long rut and began surging. The primary driver for this surge was the U.S. Treasury’s announcement a day earlier that it would double portions of its bond buyback program.
The Treasury announced that it now plans to buy back $4 billion of 10- to 30-year Treasury bonds per operation, up from the usual $2 billion.
The goal is to boost market liquidity. However, a side effect of this increased bond buyback is lower bond yields, meaning investors who own bonds earn less interest.
This often drives investors out of bonds and into riskier assets, which may offer higher returns than they could achieve with bonds.
Source: www.fastcompany.com