Bitcoin Rises as Fed’s Favorite Inflation Gauge Cools, Bond Yields Hit 20-Year Highs

The notable tension here is that crypto is rallying on softer inflation data while the bond market signals the opposite — 20-year yield highs imply tighter financial conditions, not looser ones. That divergence suggests bitcoin is trading the rate-hike-odds headline rather than the broader liquidity backdrop. Whether the cooler PCE print actually shifts the Fed's path, or merely trims near-term hike expectations while yields keep climbing, is the open question for risk assets broadly.