PANews reported on June 15th that analyst Darkfost believes when the US dollar index and bond yields rise simultaneously, capital tends to flee risk assets, and Bitcoin typically experiences a pullback under such conditions. Historically, cryptocurrency bear markets often coincide with strong upward trends in bond yields and the US dollar index. Conversely, when the US dollar index and bond yields lose momentum, investor preferences shift towards risk assets. These periods are usually associated with monetary easing or expectations of Federal Reserve rate cuts, thereby intensifying bullish sentiment in the cryptocurrency market.
Noteworthy in the current cycle is the unusual decoupling between Bitcoin and bond yields. Despite bond yields reaching historical highs for Bitcoin, it continues to trend upward and typically accelerates its rise when the US dollar index falls. This anomaly suggests a structural transformation in Bitcoin's role within the macroeconomic landscape. The reason is that Bitcoin is increasingly viewed as a store of value. This new narrative may be redefining how Bitcoin responds to traditional macroeconomic forces.
