The 30-year US Treasury yield has surged to 5%, a level only reached twice in the past two decades, prompting concerns among crypto analysts. This increase in yield makes bonds more attractive, potentially leading to a decrease in investment in riskier assets like bitcoin. As a result, bitcoin's price has dropped 2% in the last 24 hours, currently trading at $75,670. The rising yields, combined with a stronger dollar, are expected to continue pressuring crypto valuations.
The Federal Reserve's decision to maintain interest rates, along with internal dissent from three voting officials, has contributed to the increase in bond yields. Additionally, the recent oil price surge has lifted inflation expectations, further pushing yields higher.
Experts believe that until the Fed signals a shift in its monetary policy, the macroeconomic environment will remain challenging for crypto assets.