Can we chase the highs now?
I think it's still prudent to be cautious when chasing highs. Yesterday's 20-year U.S. Treasury auction results were significantly below market expectations, indicating weak demand for government bonds. To attract buyers, the U.S. government had to raise interest rates, resulting in a surge in U.S. Treasury yields, with the 20-year Treasury yield reaching 5.1%, a new high since November 2023.
This also triggered a decline in U.S. stocks. Although BTC also experienced a brief pullback following the U.S. stock market, its recovery was swift, surpassing the stock market and rising in sync with gold.
This indicates that investors are beginning to view both BTC and gold as safe-haven assets. However, the long-term rise in U.S. Treasury yields will siphon off funds from the market, with the U.S. stock market being the most affected, while the crypto market may respond with a delay.
Currently, market sentiment is quite divided; institutions are withdrawing, hedge funds are busy shorting, and only retail investors are rushing in, with retail inflows reaching new highs in a single week.
