The market is still propping itself up, but the macro fundamentals have already been hammered by a series of hard confirmations.
The Senate’s Clarity Act was effectively shelved by a vote of 49 to 50, dashing the hopes that compliant capital would step in to support the market. The harsher reality is that the Fed’s 25-basis-point rate hike has taken effect, with the dot plot holding firm that further hikes will continue within the year—pushing the 10-year U.S. Treasury yield up to around the 5% level.
On one side, the policy pathway is stuck; on the other, there’s a 5% risk-free high interest rate. The money tap is rushing toward Treasuries, and liquidity is being ruthlessly drained—so why would it be left for a high-volatility BTC? What looks like resilience right now is merely an illusion before liquidity is fully drained; in this massive headwind, trying to bet on a rebound has no chance of winning.
#BTC
The Senate’s Clarity Act was effectively shelved by a vote of 49 to 50, dashing the hopes that compliant capital would step in to support the market. The harsher reality is that the Fed’s 25-basis-point rate hike has taken effect, with the dot plot holding firm that further hikes will continue within the year—pushing the 10-year U.S. Treasury yield up to around the 5% level.
On one side, the policy pathway is stuck; on the other, there’s a 5% risk-free high interest rate. The money tap is rushing toward Treasuries, and liquidity is being ruthlessly drained—so why would it be left for a high-volatility BTC? What looks like resilience right now is merely an illusion before liquidity is fully drained; in this massive headwind, trying to bet on a rebound has no chance of winning.
#BTC