Bitcoin price preparing for 'up only mode' as US bonds suffer worst selloff since 2019

Key Points

  • Bitcoin is entering "up only mode" as US macroeconomic factors deteriorate, potentially forcing Fed intervention.
  • The US 10-year Treasury yield surged above 4.59%, marking its highest level in two months, amidst a significant bond market selloff.
  • The US dollar weakened, dropping below the 100 mark on the US Dollar Index, its worst weekly decline in over two years.
  • Bond traders are pricing in at least three rate cuts by the Federal Reserve by year-end, which historically boosts Bitcoin's value.

Summary

Bitcoin is poised for significant growth as the US bond market experiences its worst selloff since 2019, according to BitMEX co-founder Arthur Hayes. The US 10-year Treasury yield has surged to its highest in two months, reflecting a deepening crisis in the bond market. This turmoil is partly fueled by President Donald Trump's unpredictable tariff policies, which have added to market volatility. Amidst this, the US dollar has weakened significantly, dropping below a key index level for the first time since 2022. Bitcoin, in contrast, has seen a rise of over 4.50%, reaching around $83,250, as investors look for alternative stores of value. Hayes predicts an imminent policy response from the Federal Reserve, potentially leading to an "up only mode" for Bitcoin. Market analysts also suggest that a continued decline in the US Dollar Index could set the stage for a parabolic Bitcoin bull run, with historical patterns indicating strong bullish signals for Bitcoin when the dollar weakens.

cointelegraph
April 13, 2025
Crypto
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