This is part of a broader regime shift where strong employment data forces the Fed to keep rates high, while Middle East tensions add supply-side inflation pressures. Crypto markets, already in extreme fear, are vulnerable to a macro-driven capitulation event. However, if the bond market starts pricing in a recession (inverted yield curve deepening), the narrative could flip to 'Fed pivot' expectations, benefiting crypto as a hedge against fiat debasement.

US Treasuries

Treasuries prices fell due to increased expectations of Federal Reserve rate hikes and Middle East tensions.

Treasuries Rout Drains Stablecoin Reserves as Crypto Liquidity Tightens