Bitcoin has been trading in a narrow range since falling 5% on Friday, with analysts turning to U.S. Treasuries for potential signals to guide the direction of the cryptocurrency. If Treasury yields continue to rise, it could reduce the appeal of riskier assets such as cryptocurrencies and technology stocks, as well as perceived inflation hedges like gold, potentially leading to a deeper sell-off. The recent pullback in yields, however, has offered some relief to risky assets.
Atlanta Federal Reserve President Raphael Bostic's balanced tone on Thursday, calling for a cautious approach to raising rates to control inflation, may have caused rates traders to reassess their recent aggressive repricing of interest rate expectations. The trend in yields will depend on what Fed Chairman Jerome Powell says during his upcoming testimony before Congress, as well as Friday's jobs report and the February inflation data due on March 14.