The bond market is flashing a clear signal on interest rates. Bitcoin bulls should take note
The bond market is sending a signal that complicates prospects of a near-term bitcoin bull run.
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Summary
- A sharp flattening of the U.S. Treasury yield curve, with the 10-year/2-year spread at its tightest since April 2025, is signaling a more hawkish Federal Reserve stance.
- Higher-for-longer interest rate expectations are making fixed-income assets more attractive relative to non-yielding risk assets like bitcoin.
- The Fed’s latest projections show policy rates staying higher through 2028, complicating prospects for a near-term bitcoin bull run.
