Rare Yield Inversion Sends Institutions Toward Cash, Says Glassnode

Bitcoin's three-month futures basis yield has been below the yield on the U.S. two-year Treasury note since February, marking only the second prolonged inversion on record.

This rare occurrence has made cash and U.S. two-year Treasuries more attractive to institutional investors, according to blockchain analytics firm Glassnode.

Glassnode also reported that Bitcoin spot trading volume has dropped to its lowest level since 2019, with muted exchange flows and subdued demand for spot Bitcoin ETFs.

The current Bitcoin bear market is the shallowest on record when measured by drawdown, but it hasn't persisted as long as most previous bear markets, according to Glassnode's proprietary market model.