Bitcoin’s Fed cut trade flips as bond market turns into the risk
CryptoSlate
Rising bond yields and potential Federal Reserve interest rate hikes are undermining Bitcoin's growth narrative and increasing competition for capital.Summary
Bitcoin has faced downward pressure as market expectations shift from Federal Reserve interest rate cuts to potential hikes. Rising Treasury yields, with the 10-year yield hitting 4.69%, have increased the opportunity cost of holding non-yielding assets like Bitcoin. This shift reflects a tightening liquidity environment where the bond market is effectively curbing risk appetite, negatively impacting both equities and cryptocurrencies.
(Source：CryptoSlate)