CoinDesk reported that the opportunity cost of holding Bitcoin (BTC) is increasing due to rising US Treasury yields. CoinDesk diagnosed, "The appeal of BTC and gold is decreasing because higher returns can be achieved without risk from US Treasuries. Expectations for monetary easing have weakened, and the market has begun to price in the possibility of further tightening by the Federal Reserve." It added, "The 2-year Treasury yield rose to 4.05%, hitting a 12-month high. Inflation concerns have also resurfaced as April's Consumer Price Index (CPI) and Producer Price Index (PPI) exceeded expectations. According to CME FedWatch, the probability of a December rate hike increased from 22.5% to 44% in just one week. This is contrary to expectations at the beginning of the year, which anticipated at least two rate cuts by the end of the year. BTC is currently consolidating around $81,000, trading below its 200-day moving average of approximately $82,000."
