BTC rebound strengthens bullish case, but rates and oil may cap upside: CoinDesk

Bitcoin has rebounded and bullish sentiment is spreading, but upside may remain limited under one valuation metric tied to the U.S. 10-year Treasury yield, according to CoinDesk. CoinDesk said the rate-adjusted valuation ratios for Bitcoin and the Nasdaq remain below their 2020-2021 peaks, suggesting that even at current record highs, their underlying appeal is weaker than it was at that time. The outlet added that closing this gap would require either a sharp drop in interest rates or a correction in asset prices. With the Federal Reserve maintaining a hawkish stance and international oil prices also staying strong, cost-driven inflation could reaccelerate, CoinDesk said. In that scenario, risk assets including Bitcoin could face a sharp price correction toward interest-rate-adjusted valuations.