BTC faces most unfavorable US bond yield environment since launch, analyst says

Bitcoin is facing its most unfavorable U.S. bond yield environment since its inception, according to crypto analyst Darkfost. He noted on X that while long-term Treasury yields and the U.S. Dollar Index (DXY) have been higher in the past, the current market is severely constrained by liquidity issues, with a 60% probability of a rate hike priced in for this year. In such an environment, it is difficult for investors to make additional investments in risk assets, Darkfost explained. He added that periods of rising bond yields have historically coincided with slowing momentum for BTC. With Treasury yields currently fluctuating between 4.5% and 5% and approaching an inflection point, risk assets are less attractive than U.S. short- and long-term government bonds. An improvement in the situation would require a rate cut and restored confidence in holding bonds, which will depend on the policy decisions and economic outlook of the Trump administration, he said.