Bitcoin price prepares for “Up Only Mode” as US bonds suffer worst sales since 2019

Bitcoin (BTC) is entering what former Bitmex CEO Arthur Hayes calls “Up Only Mode.” This is because the deepening crisis in the US bond market could potentially distract investors from traditional shelters’ assets and to value replacements.

Loss of trust in US policy boosts the benefits of Bitcoin

On April 11, the 10th Treasury yield in the US rose sharply above 4.59%. This is the highest level in two months.

The $29 trillion US Treasury market fell more than 2% this week. Since September 2019, this is the sharpest decline since the repository market liquidity crunch forced the Federal Reserve to intervene.

President Donald Trump’s unpredictable tariff announcement and reversal have fueled confusion. Trump returned many measures within days of certain countries except China after threatening taxation on global trading partners.

The US dollar has been added to the pressure, with strength against a basket of foreign currency tracked by the US Dollar Index (DXY) below the 100 mark for the first time since 2022.

It also marked the worst weekly decline in two years.

By contrast, Bitcoin rose more than 4.50% amid the defeat of the US bond market, reaching around $83,250 in the hopes of weakening macroeconomic conditions as US policymakers take action.

“It’s like Donkey Kong,” Hayes wrote in the April 11th X-Post.

“If this continues, we’ll get more policy response this weekend. We’re about to enter a $BTC only mode.”

Additionally, bond traders are currently priced at least three rate cuts from the Federal Reserve by the end of the year, with a fourth possibility increasing. Rate reductions have historically been bullish for Bitcoin.

Because the dollar is weak, the eyes of Bitcoin are “parabolic bull run”

Historically, the sharp decline in the US dollar index has preceded the slow but powerful Bitcoin Bull run, according to Crypto analyst VentureFounder.

“DXY falling was usually a strong bullish signal for Bitcoin,” the analyst wrote to X, referring to the clear divergence of bearishness on the chart.

He added that as DXY continues to slide towards the 90th level, conditions that lead to parabolic BTC rallying in the last stages of previous bull markets can be replicated.

Additionally, John Bollinger, creator of Bollinger Bands, offered a bullish outlook for Bitcoin, noting that cryptocurrency is forming the familiar bottom for $80,000.

Related: Bitcoiner’s “bullying impulses” on recession may be premature: 10x research

Meanwhile, the mature falling wedge pattern on the BTC price chart suggests a potential Bitcoin price rise to $100,000, as reported previously by Cointelegraph.

This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.