The 30-year US Treasury yield has reached a two-decade high of 5%, sparking concerns among crypto analysts that rising yields will put pressure on bitcoin. This surge in bond yields can be attributed to the Federal Reserve's hawkish stance, elevated oil prices, and increasing long-term inflation expectations. As a result, investors may favor the relatively safe returns of bonds over the volatility of cryptocurrencies.
With the Dollar Index on the rise, bitcoin's value has already begun to decline, trading at $75,670, a 2% drop over 24 hours. Experts warn that the current dynamic, where yields remain attractive and monetary policy stays tight, will continue to pressure assets like crypto, making it an unappealing option for investors seeking returns.
The rise in bond yields is not limited to the US, with yields also increasing in the UK and other parts of the world, pointing to a broader trend of financial tightening.