4E Watch: Bitcoin falls below the 107,000 mark, and Bao Trump has a rare meeting

Financial markets experienced volatility on Thursday (May 29), with uncertainty over U.S. trade policy in the spotlight. The U.S. Federal Court of Appeals has suspended the previous Trade Court's ruling that Trump's tariffs are invalid, meaning that the tariffs are temporarily back in effect. The dramatic reversal sparked market volatility, with the 10-year Treasury yield surging as high as 4.53% intraday, but then retreating to settle at 4.42%, down 5 basis points from the previous day.

However, unlike the volatility of US Treasuries, Bitcoin showed a volatile downward trend throughout the day and fell below the key $107,300 support level in one fell swoop. The analysis points out that this highlights the willingness of Bitcoin bulls to choose to take profits and stay on the sidelines after a sharp rally in the early stage. There is an argument that the attributes of Bitcoin (BTC) are gradually shifting from a risky asset similar to technology stocks to a US dollar asset alternative closer to gold. Therefore, if the market's concerns about US Treasuries and Japanese bonds ease, and the upside risks of inflation do not subside, high US Treasury yields (if they remain above 4.5%) may continue to put pressure on the price of bitcoin.

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