According to PANews, analyst Darkfost believes that when the US dollar index and Treasury yields rise at the same time, capital tends to flee risky assets and Bitcoin usually experiences a pullback. Historically, the cryptocurrency bear market coincides with the rising trend of Treasury yields and the US dollar index. On the contrary, when the US dollar index and Treasury yields lose momentum, investors prefer risky assets, which is usually related to monetary easing or expectations of a Fed rate cut, enhancing bullish sentiment in the crypto market.
In the current cycle, Bitcoin has been unusually decoupled from Treasury yields. Bitcoin has risen despite all-time highs in Treasury yields, accelerating as the U.S. dollar index fell. This suggests a structural shift in Bitcoin's role in the macro landscape, where it is viewed as a store of value or a redefinition of how it responds to traditional macro forces.
