Core Viewpoint - Bitcoin (BTC) has risen in anticipation of a Federal Reserve interest-rate cut, despite rising Treasury yields indicating caution in the market [1][3]. Group 1: Federal Reserve Interest Rate Cut - The Federal Reserve is expected to cut the target interest rate by 25 basis points to a range of 3.5%-3.75%, marking the third consecutive reduction since September 2024, totaling a cumulative easing of 175 basis points [1]. - Rate cuts typically inject liquidity into the financial system, encouraging lending and investment, which can lead to bullish momentum in risk assets [2]. Group 2: Market Reactions - Bitcoin is trading over 1.5% higher, around $91,800, having established higher lows and highs since a drop to nearly $80,000 three weeks ago [3]. - The benchmark 10-year Treasury yield is currently at 4.15%, the highest since November 20, and has increased by nearly 20 basis points since November 28 [3]. Group 3: Hawkish vs. Dovish Outlook - Observers suggest that rising Treasury yields may indicate a "hawkish cut," where the Fed signals a pause in further easing, which could negatively impact risk assets like BTC [4]. - Analysts believe the Fed's guidance following the rate cut will be crucial, with indications that the Fed may not adopt a more relaxed stance on inflation [5][7]. - The divide within the Fed regarding inflation and labor market issues suggests a slower pace of rate cuts in 2026 [6].