Bitcoin (BTC) has experienced a notable sell-off, primarily attributed to the rise in the 2-year US Treasury yield, which recently reached 4.14%, its highest level since February 2025. This increase suggests that traders are anticipating tighter monetary policy, as the yield now exceeds the Federal Reserve's target range of 3.50%–3.75%. Market expectations indicate that the Fed may keep interest rates unchanged for most of 2026, with a potential 25 basis point hike in December. Historically, when the 2-year yield surpasses the federal funds rate, it often precedes rate hikes by the Fed, which could negatively impact Bitcoin's appeal. Although Kevin Warsh, the new Fed chair, has expressed support for Bitcoin and criticized central bank digital currencies, analysts caution that his reputation as an inflation hawk could limit his willingness to ease monetary policy. Historical trends show that Bitcoin has struggled during previous transitions in Fed leadership, with significant price declines following the appointments of Janet Yellen and Jerome Powell. As traders navigate this uncertain monetary landscape, Bitcoin's recent downturn reflects a broader de-risking strategy in anticipation of policy clarity from Warsh.