Bitcoin tops $60K amid Fed inflation talks: Is bull trap or $65K next?
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- Bitcoin rallied above $60,000 on Wednesday following Fed Chair Kevin Warsh's remarks on stubborn inflation, though traders fear the move is a bull trap.
- US spot Bitcoin ETFs logged continued net outflows, reinforcing a negative price spiral in which bearish news gets amplified while bullish catalysts barely register.
- The US 5-year Treasury yield climbed to 4.22%, with bond futures now pricing 64% odds of a Fed rate hike by September—up from 23% just one month earlier.
- The US dollar (DXY) approached its strongest level in a year while gold has fallen 12% over the past two months, both pressuring alternative stores of value.
- AI-sector momentum continues to draw capital away from crypto, with the Nasdaq 100 up 25%; even so, Micron and SanDisk shares dropped over 9% intraday after SK Hynix and Samsung announced capacity expansions.
- Bitcoin remains 53% below its all-time high, undermining confidence that $60,000 will hold as a support floor.
- Strategy boosted its cash position to restore 17 months of dividend coverage, but its variable-rate STRC preferred trades far below the $100 issuance target even after the dividend was raised to 12% from 11.5%.
Why it matters: With Fed rate-hike odds jumping from 23% to 64% in a month, the 5-year yield's rise to 4.22% is mechanically pulling capital out of non-yielding assets; Strategy's STRC preferred—needing to clear $100 to fund more BTC accumulation—still can't attract buyers despite a 12% dividend, signaling that even the most aggressive corporate buyer faces a closed capital window.
