The post Federal Reserve Intervention Could Influence Bitcoin as U.S. Treasury Market Faces Uncertainty appeared on BitcoinEthereumNews.com.

Market volatility has sparked renewed interest in cryptocurrencies as investors track significant shifts within the U.S. Treasury market. Analysts are closely watching a potential U.S. Federal Reserve intervention that could influence both the equity and crypto markets amid rising bond yields. Jake Ostrovskis, an OTC trader, highlighted the precarious position of the Treasury market, stating, “If this was to blow up again, then crypto is not going to be able to stand up against it.” This article examines recent fluctuations in the U.S. Treasury market and potential impacts on the cryptocurrency landscape as investors weigh intervention possibilities. U.S. Treasury Market Signals Gather Attention Amid Crypto Speculation As U.S. Treasury yields experience a pronounced upward trend, fears of systemic instability within the $29-trillion market are prompting analysts to predict Federal Reserve intervention. The current sell-off of Treasuries, marked by yields spiking around 4.36%, poses critical questions for investors, particularly in the cryptocurrency space. Unraveled Basis Trades and Their Impact on the Market The surge in Treasury yields can largely be attributed to the unwinding of Treasury basis trades, which have resulted in extensive selling pressure. Hedge funds have reportedly amassed approximately $1 trillion in leveraged positions, creating a precarious scenario for traders who are now facing calls to reduce risk, as noted by Ostrovskis. He surmised that this situation is echoing disturbances seen during previous market upheavals. Potential Federal Reserve Responses: Implications for Cryptocurrency In recent discussions at Brookings, experts noted that the Federal Reserve’s previous interventions during the COVID-19 pandemic involved aggressive asset purchases and expanded repurchase agreements. Market participants are speculating that a similar response could soon materialize if pressure on the Treasury market escalates. Analysts See Opportunity for Bitcoin Amid Market Turbulence Should the Fed introduce more liquidity into the markets as a countermeasure, it could lead to…

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Filed under: News - @ April 11, 2025 1:25 am