Why Bitcoin and Crypto Traders Should Pay Attention to Rising Bond Yields
In recent trading, bond yields surged while equities fell, causing concern among crypto investors, particularly with President Trump's new tariffs impacting markets. Bitcoin's value fluctuated, hitting below $75,000 before recovering to hover near $80,000. Macro experts like Lynn Alden noted that rising bond yields should concern crypto traders, as they often indicate investor risk perception and economic factors like inflation. The rise in yields suggests that demand for U.S. treasuries is falling, which typically occurs when investors sell treasuries to secure cash amidst declining asset prices. This market dynamic also reflects influences from potential inflation due to trade policies. While Bitcoin is traditionally correlated with risk assets like tech stocks, its response to the bond yield surge this time was muted, suggesting a possible decoupling from prior market trends. This shift raises questions about Bitcoin's role in the current economic landscape, indicating crypto investors should closely monitor bond market developments moving forward.
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