Expectations among Bitcoin supporters that a Federal Reserve interest rate cut would lower bond yields and weaken the US dollar are now being questioned. Signals from the US Treasury and foreign exchange markets suggest that despite potential rate cuts, the 10-year US Treasury bond yield is unlikely to change significantly. The 10-year bond yield, a key global financial indicator, reflects the government’s long-term borrowing costs and influences broader asset prices. A high yield signals increased borrowing costs and raises concerns about economic slowdown, posing risks for investors. While the prospect of Fed rate cuts had initially sparked optimism in cryptocurrencies and stock markets, recent market cues have dampened hopes that bond yields will fall or the dollar will weaken. This situation may worry Bitcoin investors, as sustained high bond yields and a strong dollar could negatively impact risk assets like Bitcoin. Additionally, shifts in global economic conditions and US monetary policies are expected to influence future market trends. Bitcoin and other cryptocurrencies now face a delicate phase, requiring investors to closely monitor financial policies and global market dynamics to better assess potential risks and opportunities.
Source: coindesk
