Bitcoin Dominance Surges to 62% Amid Market Uncertainty

Bitcoin's price has been influenced by macroeconomic factors, maintaining stability above $80,000. The market sentiment is cautious, with a risk-off vibe prevailing. Bitcoin's dominance has surged to 62%, indicating a growing divergence between Bitcoin and the broader crypto market. The ether-to-bitcoin ratio has turned negative on a four-year compound annual basis, suggesting that ether is underperforming compared to Bitcoin.

Geopolitical tensions, particularly Trump’s trade wars, are adding to the market's uncertainty. The newly appointed Prime Minister of Canada has filed to sell U.S. dollar bonds, which could put upward pressure on yields if the sale proceeds. This is significant because the U.S. administration is eager to bring down Treasury yields, given that roughly $9 trillion worth of U.S. debt is set to mature or require refinancing this year.

Market attention is now focused on the upcoming Consumer Price Index (CPI) report. Risk-asset bulls are hoping for a softer inflation print, as the S&P 500 is hovering around correction territory, down nearly 10%. If inflation comes in hotter than expected, risk assets could face further downside. The Treasury yield narrative is crucial, as it directly impacts the cost of refinancing U.S. debt and the overall economic outlook.