Bitcoin Market Cap and Treasury Real Yields Correlation Reaches Record High Above 0.6

The correlation between Bitcoin's market capitalization and 10-year U.S. Treasury real yields has climbed to an all-time high above 0.6, according to research from Fidelity Digital Assets. Bitcoin historically exhibited a negative or near-zero correlation with yields derived from Treasury Inflation-Protected Securities. However, over the two months preceding the report, Bitcoin gained nearly 30% alongside a more than 10% rise in 10-year Treasury yields. The positive shift comes amid mounting U.S. fiscal concerns, as federal debt has surpassed $40 trillion and federal interest expense has overtaken Medicare as the second-largest budget expense.