US economic data is signaling a looming recession. One of the key markers is growth in profitability The 30-year US Treasury yield is approaching its highest level in two decades at 5%.
Market data shows that yields briefly exceeded 5,03% on Monday, a level that has served as significant market headwinds for the past two years. A 5% yield makes government bonds attractive and prompts investors to withdraw capital from stocks, while simultaneously raising the cost of borrowing on mortgages, corporate loans, and US government debt.
Charlie Bilello, Chief Market Strategist at Creative Planning считает, that prices are currently pricing in a higher probability of a Fed rate hike by the end of the year (37%) compared to a 3% probability of a Fed rate cut. Experts agree that the developments in the bond market are a consequence of the sharp rise in Treasury yields.
Analysts view the current trend as a warning sign the stock market can’t ignore. One analyst calls it a nightmare scenario that could lead to a 1968-like recession.
Despite the fact that recently Bitcoin demonstrates While rising Treasury yields may increase bearish pressure on cryptocurrency, they may gain some strength. Typically, in extreme conditions, investors shift capital from high-risk assets to safer, government-backed ones.
If the geopolitical situation improves in the near future, the bullish trend could continue and even intensify. Currently, according to CoinGecko, Bitcoin trading at $81,406. It has broken through the important resistance at $80,000, paving the way for further rallies.
Risk Warning:
The information on this website is for informational and educational purposes only and does not constitute investment advice or financial recommendations. Cryptocurrencies and digital assets carry a high level of risk, including possible loss of capital. The editors are not responsible for decisions made based on the published materials. It is recommended that you conduct your own research (DYOR) before making investment decisions. Read the editorial policy. https://happycoin.club/about/