PANews, June 18 – According to a CoinDesk report, the bond market is sending a clear signal about interest rates that Bitcoin bulls should heed. The spread between the U.S. 10-year and 2-year Treasury yields has narrowed to just 28 basis points, the tightest level since April 2025, indicating a more hawkish Federal Reserve policy stance. The executive director of a policy research institution said this is the clearest market signal of the Fed pivoting hawkish. A more hawkish Fed typically means higher rates for longer, putting pressure on non-yielding assets like Bitcoin.

The Federal Reserve held rates steady on Wednesday, but the dot plot showed the median 2026 rate forecast rising from 3.4% to 3.8%, the 2027 forecast from 3.1% to 3.6%, and the 2028 forecast from 3.1% to 3.4%. Divisions within the committee were evident: one member projected a rate cut, eight projected no change, three projected one hike, five projected two hikes, and one projected three hikes. The bond market signal suggests the road to a Bitcoin bull market recovery may be more difficult, and cryptocurrencies are likely to remain under pressure.