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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a shifting macroeconomic landscape, traders are closely monitoring the rise in US Treasury yields to 5.14%, sparking debates over a potential Bitcoin 'supercycle' driven by liquidity shifts. According to reports, yields on two-year and ten-year Treasuries recently hit a 12-month high, reflecting market expectations of prolonged monetary tightening. Analysts suggest that extreme debt pressure might eventually necessitate liquidity injections to manage obligations, potentially benefiting Bitcoin as a 'hard money' alternative.
While high yields typically pressure risk assets, the current correlation shows unusual resilience in the crypto market compared to tech equities; for instance, MicroStrategy (MSTR) shares have maintained stability despite bond volatility per market data. Compared to the previous quarter, search data indicates that Bitcoin ETF inflows have provided a liquidity cushion that mitigated the traditional sell-off typically triggered by rising US interest rates.
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Sign InRegarding price action, Bitcoin remains at pivotal levels as of the close on May 25, 2026, with investors focusing on the FOMC Minutes scheduled for release on May 20, 2026, for clues on future rate paths. Markets are also awaiting Fed Governor Waller's speech on May 19, which could influence risk sentiment and the immediate trajectory of digital asset valuations.