🚨 Trump Just Broke the Fed Narrative —
$BTC Feels It First
I already create a post about this yesterday. This one is about what the numbers showed after that.
After Donald Trump said he may keep Kevin Hassett in the White House instead of moving him into the Fed chair race, the reaction started outside crypto.
US 10Y Treasury yield moved from around 4.05% to near 4.15% within hours.
That move alone tells you rate expectations shifted. Bonds don’t move like that on headlines unless policy odds change.
Now look at Bitcoin data during the same window.
Bitcoin price stayed in the $94,000–$96,000 range. No breakdown, no breakout.
Total BTC open interest stopped rising and flattened near $18–19B, instead of expanding.
Funding rates stayed positive around 0.01–0.015%, but clearly cooled from earlier level.
That combination is important.
If this was bearish, OI would drop hard and funding would flip negative. That didn’t happen. Traders didn’t rush to short. They just stopped adding leverage near highs.
🤔 Why?
Because when yields move up, leverage math changes.
At 4%+ risk-free yield, the cost of holding leveraged longs goes up. That alone is enough to slow momentum, even in a strong market. So price pauses, it doesn’t dump.
Also important:
Spot selling didn’t spike.
ETF flows did not show a sharp outflow.
So there was no real distribution. Just hesitation.
People looking only at charts miss this part. Bitcoin didn’t stall because demand disappeared. It stalled because the rate outlook got less friendly, even if only slightly.
Longer term, political uncertainty around the Fed helps Bitcoin’s story. But short term, markets don’t trade stories — they trade rates, yields, and funding.
And the data lines up cleanly:
Yields up → leverage slows → Bitcoin pauses.
That’s it.
$ETH $LIGHT
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