Federal Reserve

The 30-year fixed US mortgage rate has risen to 7.45%, driven by a wider US government bond selloff. This surge in Treasury yields increases the opportunity cost of holding Bitcoin, impacting the broader cryptocurrency market.

Fundstrat's Tom Lee argues that rising Treasury yields act as a market filter, separating strong, well-funded companies from weaker competitors rather than threatening all equities equally.

Despite a recent Federal Reserve interest rate increase, Berkshire Hathaway's massive cash and Treasury bill reserve has not yet translated into higher investment income due to the gradual maturity of legacy bills.

The US Treasury's 5-year note auction reached its highest yield since 2006, signaling weak demand and rising borrowing costs that recently put downward pressure on Bitcoin and other risk assets.

Bitcoin dropped below $84,000 following a surprise jump in US business activity that sent Treasury yields to a 19-year high and raised expectations for further Federal Reserve rate hikes.

As Wall Street turns bullish and September anxieties fade, Bitcoin rises over six percent to near eighty-six thousand dollars. Analysts debate whether the cryptocurrency will maintain its correlation with the broader stock market rally.

Fundstrat head of research Tom Lee predicts a powerful face-ripping stock market rally driven by cooling oil prices, declining Treasury yields, a potentially softer Federal Reserve stance, and widespread oversold conditions.