The 30-year US Treasury yield has surged to 5%, a level only reached twice in the past two decades, prompting concerns among crypto analysts. This increase in yield is attributed to the Federal Reserve's decision to maintain interest rates, combined with rising oil prices and long-term inflation expectations. As a result, bitcoin and other risk assets may experience downward pressure. The attractiveness of bonds, with their relatively risk-free returns, may lead to a capital rotation out of non-yielding assets like bitcoin.
Experts warn that this trend, coupled with a stronger dollar, could continue to weigh on crypto valuations and tighten financial conditions.