The 30-year US Treasury yield has reached a significant milestone, hitting 5% and sparking concerns among crypto analysts. This surge in bond yields is attributed to a combination of factors, including elevated oil prices, rising long-term inflation expectations, and a stronger US dollar. As a result, bitcoin, the world's largest cryptocurrency, is facing downward pressure, trading at $75,670, down 2% over 24 hours. The increasing yield on US government bonds is making them a more attractive investment, potentially leading to a capital rotation out of risk assets like bitcoin and into safer, yield-generating investments.
Experts warn that rising Treasury yields, coupled with a stronger dollar, have historically led to decreased crypto valuations by tightening financial conditions. The current market conditions, including the Fed's decision to maintain interest rates and the internal dissent among voting officials, are expected to keep bitcoin under pressure.