The 30-year US Treasury yield has reached 5%, a level only seen twice in the past two decades, prompting concerns among crypto analysts. This surge in bond yields is attributed to various factors, including the Federal Reserve's decision to maintain interest rates and the recent increase in oil prices. As a result, investors may opt for the relatively safe and attractive returns offered by bonds, leading to a potential decline in bitcoin and other risk assets. According to experts, the dynamic is straightforward: as long as yields remain appealing and the Fed's monetary policy stays tight, capital will favor safer alternatives, putting pressure on assets like crypto.
The current market conditions, including the strengthening Dollar Index and rising bond yields, are likely to continue affecting bitcoin and other risk assets negatively.