The 90-day tariff reduction between the US-China is fostering optimism in markets. Fears of a trade-induced recession have eased. This is boosting risk sentiment and pushing long-term bond yields higher. The 10-year Treasury yield, which fell to 4.1% in early April, climbed above 4.5% on Tuesday, hitting a one-month high. Investors are reassessing expectations for Fed policy easing. Last week, markets priced in four rate cuts, but now only two are expected by year-end. 

April inflation data came in below expectations, surprising markets. However, analysts believe firms stocked up ahead of tariffs, potentially delaying consumer price impacts. Despite rising real yields, the crypto market remains resilient. Bitcoin is trading at $104,000, near its all-time high. 

Bitcoin’s Resilience and Market Dynamics 

Bitcoin remains strong despite rising bond yields. David Lawant from FalconX notes that Bitcoin’s “digital gold” identity is maturing, supporting long-term institutional interest. According to CoinGecko, Bitcoin is just below its January record. Cryptocurrencies are undergoing a resilience test amid fluctuating risk sentiment. David Lawant, head of research at FalconX, said: 

“This volatility reflects ongoing uncertainty around trade and fiscal policy, inflation, economic growth, monetary policy, geopolitical risks, and more,” he said. “Bond market volatility has eased slightly since April but remains elevated.” 

The US-China tariff reduction is boosting risk appetite in global markets. However, more cautious expectations for Fed rate cuts are pushing bond yields higher. This creates both opportunities and risks for the crypto market. Investors are closely monitoring Bitcoin’s resilience against volatility. 

Analysts say the 90-day mutual tariff reduction between Washington and Beijing has helped alleviate trade-related fears, boosted risk sentiment, and driven long-term yields higher. 

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