The yield on the 30-year US Treasury note has surged to 5%, its highest level since July 2025, prompting concerns among crypto analysts. This increase, combined with rising long-term inflation expectations and a stronger dollar, is likely to put pressure on bitcoin and other risk assets.
As bond yields rise, they become more attractive to investors, potentially leading to a capital rotation out of non-yielding assets like bitcoin. 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, coupled with internal dissent among its officials, has contributed to the surge in bond yields. Additionally, the recent oil price rally has lifted inflation expectations, further driving up bond yields. According to experts, the current macroeconomic environment, characterized by rising yields and a strong dollar, is likely to remain a headwind for crypto assets like bitcoin.