The bond market is indicating a hawkish shift in Federal Reserve policy, which could impact Bitcoin's performance. The spread between the U.S. 10-year and 2-year Treasury yields has narrowed to 28 basis points, the tightest since April 2025, suggesting a more aggressive Fed stance. This development typically signals higher interest rates for an extended period, posing challenges for non-yielding assets like Bitcoin. Despite the Federal Reserve holding rates steady, the dot plot reveals an upward revision in rate forecasts, with the median 2026 rate rising to 3.8% from 3.4%. The 2027 and 2028 forecasts also increased, reflecting internal divisions within the committee. These signals suggest that Bitcoin and other cryptocurrencies may continue to face pressure as the path to a bull market recovery becomes more challenging.