Bitcoin Is Still Strong, but Macro Factors Pose Risk, Crypto Analyst Says

Bitcoin remains strong in the face of recent macroeconomic factors, according to crypto analyst Chang. However, Chang expressed concern over rising bond yields, which have been driven by concerns over U.S. debt and increased bond supply. The bond yield surge, along with a potential uptick in the Japanese government bond yield, could impact other assets, including bitcoin. Higher yields could increase borrowing costs for individuals and companies and reduce the appeal of riskier investments like bitcoin and technology stocks. Chang predicts that yields will remain volatile in June, creating a correlation between bitcoin and stocks. Goldman Sachs also highlighted the potential impact of rising yields on all asset classes. Traders are closely monitoring the personal-consumption expenditures (PCE) price index for insights into Federal Reserve interest rates. If the PCE data exceeds expectations, it could discourage investors from buying risk assets. A larger-than-expected increase in the core PCE figure could also weaken the case for interest rate cuts, leading to firmer bond yields. As of now, Fed funds futures suggest investors are pricing in just 35 basis points of rate cuts this year.