What’s Driving the Bitcoin Selloff? | Presented by CME Group

"Non-yielding assets like Bitcoin or gold tend to hate rising interest rates and view them as a headwind." The speaker identifies the root cause of the selloff as the "steady climb higher" in 2-year and 10-year Treasury yields since October 2025. Until the trend of rising rates reverses, non-yielding assets (Crypto and Precious Metals) face a mechanical disadvantage compared to risk-free bonds. AVOID (Until rates stabilize). A sudden reversal in Fed policy or a geopolitical shock driving a flight to safety could spike these assets despite rates.

"Tech stocks clearly have an intrinsic value based on their ability to generate revenue and the assets they hold. Below that intrinsic level, it makes great sense to buy those companies." The speaker contrasts the 50% drop in Bitcoin with the 9% drop in the NASDAQ. While both sold off, the speaker argues that Tech has a fundamental valuation floor ("intrinsic level") where buying is mathematically justified by earnings. Bitcoin lacks this, making Tech the safer, more logical "buy the dip" asset in this correction. LONG (Buy the correction in Tech). If the "intrinsic value" is recalculated lower due to a recession or earnings compression.

"In October, both 2 and 10 year Treasury yields traded at their lows of 2025, and both then began a steady climb higher since." The explicit trend described is rising yields. In the bond market, rising yields equal falling prices. To align with the macro environment described (yields climbing from 2025 lows), one would be short duration/bonds. SHORT (Betting on higher yields/lower bond prices). The economy could break, forcing yields to plummet rapidly (bond prices up).