US Treasury Yields Surge, Inflation Rises: Can Bitcoin Rebound?

US Treasury yields are approaching 5%, and inflation is heating up again, as evidenced by the August producer prices data that rose 5.4% year-over-year.

The PPI data was slightly over expectations, and Brent crude jumped past $100 this week due to supply disruptions in the Middle East.

With a probability of over 70% for a rate hike after the FOMC meeting on September 16, higher yields mean tighter financial conditions and less appetite for speculative assets like BTC.

However, some analysts point out that the Treasury's efforts to improve liquidity in long-dated government debt and the proposed $5,000 stimulus program could create conditions favorable to asset owners, including BTC, gold, and stocks.