Overview

Concerns about rising U.S. Treasury yields and the Federal Reserve's supposed policy mistake may be exaggerated, according to a report by TS Lombard.

• BTC’s daily chart indicates an approaching golden cross, suggesting a bullish outlook.

Analysis

Bitcoin's latest difficulty in surpassing $70,000 has left analysts searching for explanations, amidst worries that persistent Treasury yield increases could result in long-term decline.

Nonetheless, these fears might be overstated. The trajectory for Bitcoin appears to trend upwards, matching the anticipated golden cross.

On Monday, the yield on the U.S. 10-year note rose above its 200-day simple moving average, reaching a peak of 4.26%, as reported by TradingView. This benchmark bond yield has increased by 60 basis points since the Federal Reserve's 50 basis point rate cut on September 18.

This rise in the risk-free rate usually makes bonds more attractive, potentially diverting funds from cryptocurrencies and tech stocks. Additionally, Bitcoin's previous surge halted close to $70,000, with current prices around $67,000.

TS Lombard's analysis counters the prevailing narrative, indicating that the Fed's gradual cuts won’t reignite inflation and that rising Treasury yields are in alignment with non-recessionary rate cuts historically.

Conclusion

As speculated by Perkins from TS Lombard, the true error lies with those who cling to policies perceived as mistakes despite the actions of financial authorities, while the current economic environment doesn’t indicate a bearish trend for risk assets like Bitcoin.

The future holds promise for Bitcoin, especially if the golden cross occurs as expected, potentially leading to a bullish rally.