PANews June 25 news, BitMine Chairman Tom Lee said in yesterday's webinar that the market is still digesting Kevin Warsh's remarks since his first Fed press conference last week. At the macro level, oil prices have fallen from wartime highs, with WTI crude at $74, and the war premium is steadily fading, approaching the pre-invasion level of around $65, signaling that the market is pricing in a gradual end to the war. On the other hand, the 10-year Treasury yield keeps climbing, having risen from 4.2% during the war to 4.5%, on an upward trajectory since February.

Tom Lee believes that the main headwind for the market recently is the rise in U.S. Treasury yields, and not just the 10-year — the market itself is starting to price in that the Fed must raise rates. Federal funds futures data show the market is now pricing nearly two rate hikes by year-end. Bank of America went a step further today, forecasting three rate hikes this year in September, October, and December. Tom Lee cited Gundlach's view that the spread between the two-year Treasury yield and the federal funds rate has turned positive to 0.6%, meaning the Fed needs to raise rates by 60 basis points (roughly two hikes) to catch up with the yield curve, and that this spread has continued to widen over the past month, confirming the pressure that the rise in Treasury yields is putting on the market.