Bitcoin survived 5% yields but crypto’s cheap-money era did not
🔍 Executive Brief: Bitcoin and Ethereum rallied 43% and 71% respectively in Q3, defying a 5.34% peak in US 10‑year Treasury yields, yet the crypto sector’s cheap‑money advantage has eroded. The surge underscores a disconnect between traditional bond markets and crypto valuations, signaling a shift in risk appetite.
📊 Trader Lens & Market Flow: Higher Treasury yields compress macro liquidity, tightening funding costs for leveraged crypto positions and compressing futures open interest. Institutional players are recalibrating exposure, favoring hedged strategies and diversified asset classes as market structure pivots toward tighter spreads and reduced speculative momentum.