QCP: Bitcoin has not been favored as a hedge, participants still lean towards defense until a clearer situation emerges

QCP issued a statement today stating that the United States has demonstrated its strength and strategic edge policy by implementing deterrent tactics through exaggerated tariff figures. The bond market is beginning to send warning signals. The yield on 10-year U.S. Treasury bonds soared to 4.6%, and the yield on 30-year U.S. Treasury bonds broke through 5%, disrupting risk sentiment. If Trump hopes to boost the stock market during his term, long-term yields must fall rather than rise. The sell-off in the bond market has intensified pressure for Federal Reserve intervention. It now seems to be approaching a turning point.
Last week, the Fed indicated it was ready to take action to stabilize financial conditions. Governor Waller further emphasized this shift, suggesting that the Fed's attention is shifting towards recession risks, implicitly downplaying persistent inflation issues which they are now describing as "transitory". The Fed had previously applied this "transitory" label to various inflation cycles, but these cycles were far from transitory. Nevertheless, the Fed's protective mechanisms are gradually getting closer and markets now expect there will be three-and-a-half rate cuts by 2025.
Meanwhile, as geopolitical tensions escalate, gold continues to rise. As US Treasuries and dollars lose some of their traditional safe-haven appeal, gold has become the preferred value storage tool in markets.Bitcoin differs from gold in that it hasn't received demand for hedging.The narrative of "alternative value storage" failed to attract interest in current macro environment.Market participants remain defensive.They continue focusing on hedging downside risks until clearer situation emerges.