Yield curve flattening signals hawkish Fed, bitcoin risk

The U.S. Treasury yield curve flattened sharply, with the 10-year/2-year spread at 28 basis points, the tightest since April 2025. This signals a more hawkish Federal Reserve, making fixed-income assets more attractive than non-yielding bitcoin. Higher-for-longer rate expectations through 2028 complicate a near-term bitcoin bull run.