Fed's Hawkish Tone Drives Treasury Yield Past 4.35%, Testing Bitcoin Near $78K

The Federal Reserve's hawkish tone has pushed the U.S. 2-year Treasury yield sharply higher, surpassing 4.35%. This move reflects persistent inflation concerns and increased market expectations for a September rate hike, with the probability rising from 35% to 60%. Bitcoin remains resilient near $78,000 but faces pressure from rising yields that could tighten financial conditions.

According to Pluang, Federal Reserve Chair Kevin Warsh's speech at Jackson Hole emphasized persistent inflation concerns. This hawkish stance has increased market expectations for a September rate hike and raised the probability of such an event from 35% to 60%. The U.S. 2-year Treasury yield has sharply higher above 4.35%, reflecting these concerns.

Bitcoin's price remains near $78,000, but its stability is being tested by rising yields that could tighten financial conditions. Investors will closely watch upcoming inflation and labor data for significant moves in bonds, crypto, and equities.