The yield on the 30-year US Treasury note surged to 5%, its highest level since July 2025, prompting concerns among crypto analysts. This increase, combined with elevated oil prices and long-term inflation expectations, is pushing bond yields higher and making them more attractive to investors. As a result, capital may shift away from non-yielding risk assets like bitcoin, which is already under pressure due to an uptick in the Dollar Index.
The rise in bond yields typically hurts risk assets, including bitcoin and technology stocks, as investors opt for the relatively safe and high-return government bonds. Experts warn that the current financial tightening, characterized by rising Treasury yields and a stronger dollar, may continue to pressure crypto valuations.
The Fed's decision to maintain interest rates, coupled with internal dissent from three voting officials, has also contributed to expectations of higher-for-longer interest rates, further impacting bond yields.