# Is the Fed Letting the Market Do the Tightening? 

_The yield curve is steepening_

August 5, 2026 • Michael Nadeau

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# Is the Fed Letting the Market Do the Tightening?

## The yield curve is steepening

Michael Nadeau
 August 05, 2026

 Hello readers,

 Last week we saw the first major deleveraging/”risk-off” move in the Nasdaq, with the frothiest corners of the “AI trade” getting hit hardest.

 The move came amid a repricing of the U.S. Treasury curve (along with rising real rates), as investors question how the Fed intends to contain inflation.

 We’re now whipsawing back *up*, with the Nasdaq just off all-time highs (after dropping 10%).

 Which begs the question.

 Was last week’s degrossing event similar to 10/10/25 in the crypto markets (the start of a broader correction)?

 Or was it just a bump on the path to new all-time highs?

 We provide a BTC “Cycle Awareness” update this week while exploring that very question and what it means for the crypto markets.

 Topics covered:

- [“Cycle Awareness” Update](#cycle-awareness-update)

- [Current Conditions Update](#current-conditions)

- [BTC vs Nasdaq](#btc-vs-nasdaq)

- [Closing Thoughts & Portfolio Management](#closing-thoughts-portfolio-manageme)

 Let’s go.

# “Cycle Awareness” Update

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