The 30-year US Treasury yield has reached 5%, its highest level since July 2025, prompting concerns among crypto analysts that rising yields will hinder bitcoin's performance. This increase in bond yields is attributed to a combination of factors, including dissent within the Federal Reserve, rising oil prices, and growing long-term inflation expectations.
As a result, investors may favor bonds over riskier assets like bitcoin, potentially leading to a decline in crypto valuations. Experts suggest that the current market conditions, characterized by high bond yields and a strong dollar, are likely to continue pressuring bitcoin and other risk assets. The rise in bond yields is not limited to the US, with yields also increasing in the UK and other parts of the world.
The Federal Reserve's decision to maintain interest rates, coupled with the internal dissent, has led to expectations of higher interest rates for a longer period, further contributing to the increase in bond yields. The surge in oil prices, which reached their highest level since 2022, has also played a role in lifting inflation expectations and pushing yields higher. Overall, the current macroeconomic environment is expected to remain a challenge for bitcoin and other risk assets.