BTC Rises Amid Fed Rate Cut Expectations, But Treasury Yields Rise

In accordance with Coindesk, Bitcoin rose Monday as markets anticipated a Federal Reserve interest-rate cut this week, though rising Treasury yields signaled caution. The Fed is expected to cut the target interest rate by 25 basis points to the 3.5%-3.75% range, marking the third consecutive reduction since September 2024. Despite the expected easing, the 10-year Treasury yield climbed to 4.15%, the highest since November 20. Analysts suggest the rate cut may be 'hawkish,' with Chair Jerome Powell likely to signal a pause in further cuts, which could weigh on risk assets like BTC. Markus Thielen of 10x Research noted that while the cut itself is expected, the press conference following the decision could introduce market volatility. ING analysts also pointed to a growing divide within the Fed over inflation and labor-market concerns, suggesting a slower pace of rate cuts in 2026. Meanwhile, Jeff Anderson of STS Digital highlighted that the market is more focused on Japanese government bond yields and potential Fed purchases of T-Bills.