Those who have been following the markets recently should have noticed that expectations for interest rate hikes are rising again. Meanwhile, bond markets are unraveling under this pressure, and in this environment, a new fear has emerged for Bitcoin.

The interesting point is this: the expectation of an increase in annual interest rates traditionally negatively impacts risky assets. Alternative investments like Bitcoin are also under pressure during this period. The activity in the bond market indicates a liquidity pull.

When these dynamics combine, it’s easy to see that Bitcoin is facing new challenges. When the interest rate environment tightens, annual return expectations change, which affects risk appetite.

The current turbulence in the market is not only a test for Bitcoin but also a significant test period for the overall crypto market. How long this volatility in the bond market will last and which direction interest rate policies will take will be the key determining factors in the upcoming period.