Treasury Yields Challenge Bitcoin as Institutional Demand Fades

Bitcoin held steady around $64,728 as of Thursday evening, despite Treasury yields posing a new challenge to its price. The cryptocurrency gained about 1.9% from the previous day's low.

The decline in institutional demand for Bitcoin is a concern, particularly since February when returns on three-month bitcoin futures have been below those of two-year Treasuries. This shift eliminates a crucial motivation for market-neutral institutional investors.

According to Glassnode, there has only been one other instance where Treasury yields outperformed bitcoin carry for a similar duration. That period lasted from August 2022 to January 2023, concluding at the cycle low.