Bitcoin no longer reacts to rising US treasury yields — CoinDesk

The yield on the 10-year US Treasury note has surpassed 4.5%, hitting a one-month high as risk appetite renewed following the US-China trade deal. This rise has prompted investors to reshape their expectations for the Federal Reserve's rate-cutting plans. Meanwhile, Bitcoin, which typically reacts negatively to increasing Treasury yields, is holding steady near $103,800.

April's softer-than-expected US inflation data has dramatically shifted rate cut expectations. Markets are now pricing in just two Fed rate cuts this year, down from previous projections of four. While this could theoretically weigh on Bitcoin as a non-yielding asset, CoinDesk's David Lawant believes that the cryptocurrency's price action continues to move away from its historical patterns.

The expert suggests Bitcoin should no longer be viewed as a mere commodity, but rather as digital gold. The cryptocurrency has become increasingly resilient to rising Treasury yields, which is a clear sign that institutional investors now recognize it as a legitimate strategic asset.