In today’s crypto markets, macroeconomics has become the dominant narrative. As a result, key indicators such as the DXY (US Dollar Index) and US Treasury yields are now closely monitored by investors, as they reflect institutional sentiment and the broader state of global liquidity.
This chart provides a visual comparison between Bitcoin, the DXY, and 5Y, 10Y, and 30Y Treasury yields.
It clearly illustrates a well-known macro principle:
- When both the DXY and bond yields rise, capital tends to flee risk assets. Bitcoin often experiences corrections in such environments. Historically, bear markets in crypto have coincided with strong uptrends in both yields and the DXY.
- Conversely, when the DXY and yields lose momentum, investor appetite shifts back toward risk. These periods are typically linked to monetary easing or expectations of Federal Reserve rate cuts, fueling bullish sentiment across crypto markets.
What’s striking in the current cycle is the unusual decoupling between Bitcoin and bond yields. Despite yields reaching some of their highest levels in Bitcoin’s history, BTC continues to trend upward, often accelerating when the DXY declines.
This anomaly suggests a structural shift in Bitcoin’s role within the macro landscape.
The explanation is that Bitcoin is becoming increasingly perceived as a store of value.
This new narrative may be redefining how BTC reacts to traditional macro forces.
Written by Darkfost
