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