- April inflation data came in lower than expected, but analysts suggest companies may have bought supplies early to avoid tariffs, possibly delaying consumer price impacts.
- Despite higher yields, experts say Bitcoin’s status as “digital Gold” continues to strengthen its position with institutional investors.
The yield on the U.S. 10-year Treasury note rose to 4.5% on Tuesday, reaching its highest point in more than a month. The change followed a temporary easing of tariffs between the United States and China, prompting investors to adjust their expectations for Federal Reserve interest rate changes.
According to recent data, the yield had fallen below 4.1% in early April but has since rebounded sharply. Meanwhile, the price of Bitcoin remains just under its January record, currently trading at $104,000, based on figures from CoinGecko.
A joint 90-day reduction in tariffs by the U.S. and China has helped calm concerns about a recession caused by trade disputes, according to analysts. This policy shift improved investor sentiment, raising demand for riskier assets and pushing Treasury yields higher. Traders now expect two interest rate cuts from the Federal Reserve by the end of the year, a drop from expectations of four just last week, even as April’s inflation data were lower than predicted.
Some experts note that firms likely stocked up on supplies ahead of the tariff reduction period. This action may have muted the immediate impact on consumer prices, which is why inflation appeared softer in April. “CPI inflation appeared softer not because inflationary pressure is gone, but because companies buffered the impact by acting early. The effects may show up in future months, once that stockpiled inventory runs out,” the article states.
Market uncertainty remains due to trade policy changes and economic conditions. David Lawant, head of research at FalconX, told Decrypt that “this choppiness reflects ongoing uncertainty around trade and fiscal policy, inflation, economic growth, monetary policy, geopolitical risks, and more.” He noted that while bond market volatility is lower than it was in April, it is still above average.
Typically, higher “real yields”—the return on government bonds after accounting for inflation—make investments like gold and Bitcoin less attractive, since they don’t pay interest. However, Lawant believes Bitcoin is developing a distinct role for institutional investors. “Bitcoin isn’t just another commodity; it is best understood as emerging digital gold. As institutions start to grasp its unique properties, the price action should be driven more and more by the asset’s maturing identity,” he said.
Lawant also pointed out that structural support for digital assets remains strong due to growing regulatory clarity and new applications, including stablecoins and tokenized real-world assets. The article concludes that, despite ongoing volatility, the long-term case for cryptocurrencies is becoming stronger for large investors.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- US Regulators Ease Crypto Rules, Enabling Banks to Hold Digital Assets
- Bitcoin Holds Above $100K as VIX Drops, Bullish Sentiment Surges
- Masked Gang’s Failed Paris Abduction Targets Crypto Chief’s Family
- Galaxy Digital Posts $295M Loss Despite 38% Revenue Jump in Q1 2025
- VanEck Launches Tokenized Treasury Fund VBILL With Securitize
