Crypto spent the weekend deep in the red, but the real liquidity squeeze isn’t happening in crypto at all.
The U.S. 10-year yield has been hovering around 5% in recent days, while the cost of long-term financing is at its highest level since 2007.
The Treasury is busy with buybacks and debt maturity management — in simple terms, money is getting more expensive.
And when money is expensive, assets like $BTC that don’t generate yield and rely heavily on liquidity stay under pressure.
Next week, Fed officials like Williams, Jefferson, Barkin and others will take turns speaking. I’m not expecting any major decisions — probably plenty of words, but not much action.
My takeaway?
Don’t get distracted by the noise inside crypto.
Watch the 10-year Treasury yield and the dollar index.
If they start weakening, that’s when crypto can finally get some real breathing room.
If they don’t, most rallies are likely to remain temporary.
The U.S. 10-year yield has been hovering around 5% in recent days, while the cost of long-term financing is at its highest level since 2007.
The Treasury is busy with buybacks and debt maturity management — in simple terms, money is getting more expensive.
And when money is expensive, assets like $BTC that don’t generate yield and rely heavily on liquidity stay under pressure.
Next week, Fed officials like Williams, Jefferson, Barkin and others will take turns speaking. I’m not expecting any major decisions — probably plenty of words, but not much action.
My takeaway?
Don’t get distracted by the noise inside crypto.
Watch the 10-year Treasury yield and the dollar index.
If they start weakening, that’s when crypto can finally get some real breathing room.
If they don’t, most rallies are likely to remain temporary.