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 a combination of factors, including the Federal Reserve's decision to maintain interest rates and the recent increase in oil prices.
As a result, investors may be drawn to the relatively safe and attractive returns offered by bonds, potentially leading to a decline in investments in riskier assets like bitcoin. With the US dollar also gaining strength, bitcoin's value has already begun to feel the pressure, trading at $75,670, down 2% over 24 hours. Experts warn that rising bond yields and a strong dollar have historically led to decreased valuations in the crypto market. The current economic climate, characterized by financial tightening and rising borrowing costs, is expected to continue weighing on bitcoin and other risk assets.