Bitcoin’s bullish momentum wanes as traders seek safety in government bonds amid recession fears. Equities benefit from expectations of a Fed rate cut, while BTC faces pressure. US 2-year Treasury yield drops to 3.60%, signaling risk aversion. CME FedWatch shows declining expectations for lower rates. Bitcoin still highly correlated with tech stocks.

Potential S&P 500 inclusion of Strategy (MSTR) could disrupt correlation patterns, legitimizing the asset class. Fiscal imbalances could favor Bitcoin amid dollar weakness. Bank of America predicts euro strength against USD by 2026. Short-term risk aversion may push BTC to $108,000 level, but demand for Treasurys not necessarily bearish in long term.

Read more at Cointelegraph: Bitcoin Sell-off To $108K Possible As Traders Choose Bonds