According to CoinDesk: Bitcoin (BTC) is approaching a bullish "golden cross" pattern on its daily chart, signaling a potential rally, despite concerns over rising U.S. Treasury yields. According to market analysts, fears of Bitcoin's price being adversely impacted by increasing bond yields may be exaggerated. While some worry that rising yields, often seen as bearish for risk assets like cryptocurrencies, could cause a pullback, macroeconomic research firm TS Lombard suggests that the situation is not as dire as it seems.

Rising Treasury Yields and Bitcoin Price

The yield on the U.S. 10-year Treasury note reached a three-month high of 4.26%, leading to concerns that higher yields might drain liquidity from risk assets such as Bitcoin and tech stocks. Bitcoin failed to break through the $70,000 resistance on Monday, retreating to $67,000 shortly after. Some analysts view this as a reaction to the yield increase, fearing that the Federal Reserve's rate cuts may lead to higher inflation, reminiscent of the 1967 policy mistake.

TS Lombard: Treasury Yield Concerns Overblown

However, TS Lombard argues that the rise in Treasury yields is consistent with historical trends following non-recessionary rate cuts. Dario Perkins, managing director of global macro at TS Lombard, noted that the increase in bond yields is not necessarily bearish for risk assets like Bitcoin. He emphasized that the Federal Reserve can cut rates without reigniting inflation, pointing out that current market conditions are aligned with previous rate-cut cycles that did not lead to major outflows from risk assets.

Bitcoin's Golden Cross: Bullish Signal Ahead

Bitcoin’s price chart is nearing a golden cross, where the 50-day simple moving average (SMA) crosses above the 200-day SMA. Historically, this technical pattern has signaled the start of major bull runs, with Bitcoin doubling in value during previous occurrences. Despite the Golden Cross being a lagging indicator, it has previously been followed by significant price gains.

What’s Next for Bitcoin?

While some analysts, such as The Great Martis, believe that rising bond yields could create a "perfect storm" for risk assets, others argue that the golden cross could push Bitcoin to new highs. Historical performance following golden crosses suggests that Bitcoin could experience triple-digit percentage gains, further buoyed by a strong outlook for risk assets as the U.S. presidential election approaches.

In summary, while rising Treasury yields have sparked some concern, the market outlook for Bitcoin remains optimistic. The upcoming golden cross could signal the start of a major rally, potentially pushing BTC beyond its current price levels, even as yields climb.

Key Points:

  • Bitcoin failed to break the $70,000 resistance, retreating to $67,000 amid rising U.S. Treasury yields.

  • TS Lombard suggests concerns over bond yields are overblown and consistent with past non-recessionary rate cuts.

  • Bitcoin’s golden cross signals a bullish outlook, with potential for significant price gains.

  • The U.S. election and macroeconomic trends may support Bitcoin’s continued upward momentum.

Bitcoin traders are closely watching these technical and macroeconomic factors, which could shape the next phase of BTC's price action.

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