Bitcoin is experiencing cautious trading as U.S. bond yields approach the 4% mark, reflecting tightening financial conditions. The 2-year Treasury yield is showing signs of strength, forming a head-and-shoulders pattern that could lead to an upward breakout. This development raises concerns about liquidity and economic risk, which typically weigh on risk assets like Bitcoin. Despite these macroeconomic pressures, Bitcoin's correlation with bond yields remains at 39%, suggesting that while higher yields may exert pressure, they do not fully dictate Bitcoin's price direction. U.S. investors continue to support Bitcoin, as evidenced by the Coinbase Premium Index and sustained inflows into spot Bitcoin ETFs, which recorded $823 million in net buying over nine days. However, daily inflows have recently moderated, indicating some caution among investors. The market remains in a holding pattern, with Bitcoin's trajectory dependent on whether buying momentum can counteract macro-driven weakness. A confirmed breakout of bond yields above 4% could intensify headwinds for Bitcoin, challenging its current market structure.