The Trump administration's strategy to lower the 10-year Treasury yield involves managing inflation and fiscal spending. Treasury Secretary Scott Bessent emphasized this could reduce borrowing costs, potentially benefiting risk assets like Bitcoin (BTC). A falling yield would encourage borrowing and investment, while reduced fiscal spending might present short-term challenges. Analysts speculate on the feasibility of these plans, as decreasing the budget deficit would result in fewer bonds available, leading to higher prices and lower yields. Despite recent drops in the yield to around 4.42%, experts from ING express doubt that significant declines will be sustained, suggesting a floor exists at just under 4%. With the administration targeting energy supply as a means to manage inflation, the overall effect on BTC remains uncertain, and any significant cuts in federal spending could destabilize cryptocurrency markets. Investors are encouraged to remain cautious amid these economic adjustments.

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