According to PANews, analyst Darkfost believes that when the dollar index and government bond yields rise simultaneously, capital tends to flee risk assets, and Bitcoin usually experiences a pullback. Historically, the bear market in cryptocurrencies has coincided with the upward trends in government bond yields and the dollar index. Conversely, when the dollar index and government bond yields lose momentum, investors prefer risk assets, which is often related to monetary easing or expectations of interest rate cuts by the Federal Reserve, enhancing bullish sentiment in the crypto market.
In the current cycle, Bitcoin is unusually decoupled from government bond yields. Despite government bond yields reaching historical highs, Bitcoin continues to rise, accelerating when the dollar index falls. This indicates a structural shift in Bitcoin's role within the macro landscape, being seen as a store of value, or redefining its response to traditional macro forces.
