The 30-year US Treasury yield has reached 5%, its highest level since July 2025, prompting concerns among crypto analysts about the potential impact on bitcoin. This surge in bond yields is attributed to a combination of factors, including dissent within the Federal Reserve, elevated oil prices, and rising long-term inflation expectations. As a result, bitcoin, which is already under pressure, may face further challenges. The increase in bond yields makes them a more attractive investment option, potentially leading to a rotation of capital out of risk assets like bitcoin.
According to experts, rising Treasury yields and a stronger dollar have historically put pressure on crypto valuations by tightening financial conditions. The current economic landscape, with rising bond yields and a strong dollar, is likely to continue posing a headwind for bitcoin and other risk assets.