Interesting shift happening in the bond market right now. Treasury yields are climbing even as traders are piling into bets that the Federal Reserve will cut rates.

Usually you'd expect yields to drop when rate cut expectations heat up, but we're seeing the opposite play out. Could be that the market is pricing in a more complex scenario—maybe concerns about inflation staying sticky, or doubts about how aggressive the Fed will actually be.

For anyone watching crypto and risk assets, this matters. When bond yields rise, it typically pulls capital away from speculative plays. The correlation isn't perfect, but historically higher yields have pressured digital assets as investors chase safer returns.

The rate cut narrative has been driving sentiment across markets for months now. If Treasury yields keep pushing higher despite those expectations, we might be in for some volatility ahead. Worth keeping an eye on how this divergence resolves itself.