The 30-year US Treasury yield has surged to 5%, its highest level since July 2025, sparking concern among crypto analysts. This increase, combined with elevated oil prices and rising long-term inflation expectations, is pushing bond yields higher and making them more attractive to investors. As a result, capital may flow out of non-yielding risk assets like bitcoin, which is already under pressure. 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 led to expectations of higher interest rates for longer, further contributing to the surge in bond yields. This development may continue to exert downward pressure on bitcoin and other risk assets.