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 that bitcoin may suffer as a result. This increase in yield makes bonds more attractive to investors, potentially leading to a capital rotation out of risk assets like bitcoin. As a result, bitcoin is already under pressure, trading at $75,670, down 2% over 24 hours.
The rising yields, combined with a stronger dollar and elevated oil prices, are tightening financial conditions and weighing on crypto valuations. According to experts, the dynamic is simple: as long as yields remain attractive, capital will favor safer assets over riskier ones like crypto, putting downward pressure on bitcoin and other risk assets. The recent surge in oil prices and the Federal Reserve's decision to keep interest rates steady, with some officials pushing back against easing, have also contributed to the increase in bond yields and the subsequent pressure on bitcoin.