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 can make them more attractive to investors, potentially drawing capital away from riskier assets like bitcoin.
As a result, bitcoin's value may decline. The current economic climate, marked by rising oil prices and long-term inflation expectations, is also contributing to higher bond yields. The Federal Reserve's decision to maintain interest rates, combined with internal dissent among its officials, has led to expectations of higher interest rates for a longer period, further impacting bond yields.
Crypto experts believe that as long as bond yields remain high and the Fed's monetary policy stays tight, investors will favor safer assets over riskier ones like cryptocurrency.