The yield on the 30-year US Treasury note has surged to 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 various factors, including elevated oil prices and long-term inflation expectations.
As a result, investors may favor bonds over riskier assets like bitcoin, leading to a potential decline in crypto valuations. 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, combined with internal dissent among its officials, has contributed to expectations of higher interest rates for a longer period, further impacting bond yields.
Additionally, the recent oil price surge has lifted inflation expectations, pushing yields higher. Crypto analysts and experts, such as Diana Pires and Vikram Subburaj, have weighed in on the situation, noting that rising Treasury yields and a stronger dollar have historically pressured crypto valuations by tightening financial conditions.