Bitcoin Investment Case Holds as US 10-Year Yields Revisit April Highs
The yield on the U.S. 10-year Treasury note surpassed 4.5%, the highest in over a month, influenced by a temporary rollback in tariffs between the U.S. and China and a reassessment of Federal Reserve policy. This increase follows a dip below 4.1% in early April. Bitcoin trades near its January all-time high at $104,000. The 90-day tariff reduction has alleviated fears of a trade-driven recession, enhancing risk sentiment and raising long-end yields. Traders now anticipate two rate cuts by year-end, down from four, despite lower-than-expected inflation data for April. Companies may have stockpiled inputs ahead of the tariff changes, which could delay the impact on consumer prices. Higher real yields typically challenge non-yielding assets like gold and Bitcoin, but Bitcoin's role as "digital gold" may alter this dynamic. The long-term investment case for crypto remains strong, supported by regulatory clarity and expanding use cases.
