Bitcoin Fails to Benefit as Stocks Shrug Off 5% Treasury Yields
Wall Street strategists are confident that record-high stocks can withstand 5% Treasury yields because $9 trillion sits in cash. However, Bitcoin has not benefited from this yield environment and is struggling to attract parked cash.
The 30-year Treasury yield has topped 5.3%, its highest level since 2007, while corporate bonds are yielding 6.4-7.5%. Over the same period, Bitcoin has fallen 46% in value, while gold gained roughly 33%.
Bitcoin's inability to attract parked cash is a key concern for investors. The asset has been range-bound near $64,000 and has yet to benefit from the current yield environment.
The Federal Open Market Committee (FOMC) minutes on Wednesday could shift the macro backdrop and test Bitcoin's role as an inflation hedge and adoption catalyst.