📉 US Treasury Yield Expectations: Trump Policies + Federal Reserve Movements Trigger Market Volatility! 🇺🇸💵
Although Trump's trade and tax policies may pose a threat to the bond market, Wall Street still sees signals from the Federal Reserve, predicting that the yield on US short-term Treasury bonds will decline by 2025. Strategists generally predict that the yield on US 2-year Treasury bonds will decrease by at least 50 basis points to 3.75% in the next 12 months.📉
Why does this affect the crypto market?
✅ Short-term Interest Rate Decline: If the Federal Reserve's policies indeed lead to a drop in the 2-year Treasury yield, market liquidity may improve, and risk assets (such as Bitcoin and altcoins) could benefit, increasing the likelihood of short-term capital inflows into the crypto market.
❌ Long-term Interest Rates Remain High: However, the yield on 10-year US Treasury bonds is expected to only slightly decline, and persistently high long-term rates may still exert pressure on the crypto market, especially on highly leveraged trading and speculative behavior.
Although the uncertainty brought by Trump's policies has increased market volatility, there is a general belief that the Federal Reserve may continue to maintain a flexible rate-cutting path. For crypto investors, this change provides more investment opportunities, but it is also necessary to remain vigilant and adjust positions in a timely manner.💡
