Concerns about rising U.S. Treasury yields and a potential policy mistake by the Federal Reserve might be exaggerated, according to macroeconomic research firm TS Lombard. Bitcoin recently formed a bullish pattern with an impending golden cross on its daily chart, signaling a possible upward trend even as it struggled to exceed $70,000, retreating to $67,000. Rising bond yields, reaching 4.26%, make bonds more attractive, often pulling investments away from riskier assets like cryptocurrencies. Analysts have voiced concerns that increased Treasury yields could lead to a decline in Bitcoin's price, but TS Lombard argues that the current monetary policy is not overly tight and that rate cuts, even if the economy remains resilient, are not inherently damaging to risk assets. They emphasize that historical patterns show that the 10-year Treasury yield often increases following non-recessionary rate cuts. Furthermore, gold's record highs amid rising yields suggest that perceived store of value assets like Bitcoin can also perform well under similar conditions. The optimistic technical indicators suggest that Bitcoin could enter a significant bull run soon.

Source 🔗