The correlation between Bitcoin and the 10-year Treasury yield has fallen to a 14-year low of -53, indicating a sharp decline in the relationship between the two assets. The Treasury yield represents the return on investment for US government bonds, which are considered a safe-haven asset. Despite predictions from bond strategists that Treasury yields will stabilize and possibly decline by the end of the year, the current uncertainty in the market is causing investors to seek refuge in government bonds, driving yields down.

The US Federal Reserve's decision to implement rate cuts has also impacted the Treasury yield, causing it to drop significantly earlier this year. However, the yield rebounded due to strong economic data and high inflation, leaving investors uncertain about the Fed's next move. The possibility of no rate cuts in 2024 is also on the table, adding to the market's uncertainty. This uncertainty is affecting the price of Bitcoin, which dropped to $66,000 on Tuesday after a 19-day inflow streak ended.

Despite high inflows, Bitcoin failed to break through the $72,000 mark due to strong jobs data, and its price is expected to fluctuate again on Wednesday with the release of the consumer price index report and the Federal Reserve's interest rate decision. If borrowing costs decrease, it could benefit risky assets like Bitcoin. The current market conditions are highlighting the complex relationship between Bitcoin and Treasury yields, with investors seeking safe-haven assets amidst uncertainty.

The correlation between Bitcoin and Treasury yields is a key indicator of market sentiment, and the current decline is a sign of investors' risk aversion. As the market navigates the uncertainty surrounding the Federal Reserve's decision and the release of key economic data, the price of Bitcoin is likely to remain volatile. Investors are seeking safe-haven assets, and the current market conditions are highlighting the complexities of the relationship between Bitcoin and Treasury yields.

In conclusion, the sharp decline in the correlation between Bitcoin and Treasury yields is a sign of the current market uncertainty. As investors seek refuge in government bonds, the price of Bitcoin is likely to remain volatile. The upcoming consumer price index report and the Federal Reserve's interest rate decision will be key indicators of market sentiment, and investors should be prepared for further fluctuations in the price of Bitcoin.