The yield on the 30-year US Treasury note has reached a two-decade high of 5%, sparking concerns among crypto analysts that rising yields will hurt bitcoin. This surge in bond yields is attributed to a combination of factors, including dissent within the Federal Reserve, high oil prices, and increasing long-term inflation expectations. As a result, investors are favoring bonds over riskier assets like bitcoin, which is already under pressure due to a strengthening US dollar.
The rise in bond yields typically leads to a decrease in demand for non-yielding assets like bitcoin, as investors seek more attractive returns. Experts warn that the current market conditions, including rising yields and a strong dollar, will continue to exert downward pressure on crypto valuations.