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 hurt bitcoin. As bond yields increase, they become more attractive to investors, potentially leading to a capital rotation out of risk assets like bitcoin.
This shift is further exacerbated by a stronger US dollar, which is also weighing on gold prices. 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 leave interest rates unchanged, combined with internal dissent among voting officials, has led to expectations of higher interest rates for longer, contributing to the increase in bond yields. Meanwhile, a rally in oil prices is lifting inflation expectations, which is also pushing yields higher.
According to crypto analysts, the current macro environment remains a headwind for bitcoin, with rising yields and a strong dollar likely to continue pressuring crypto valuations.