Analysis: Bond Market Signals Hawkish Fed, Bitcoin May Remain Under Pressure

CoinFeed June 18 news, according to CoinDesk, 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 Fed policy stance. The executive director of a policy research institution said this is the clearest market signal of the Fed turning hawkish. A more hawkish Fed typically means higher rates for longer, putting pressure on non-yielding assets like Bitcoin. The Fed held rates steady on Wednesday, but the dot plot showed the median 2026 rate forecast rose to 3.8% from 3.4%, 2027 to 3.6% from 3.1%, and 2028 to 3.4% from 3.1%.