The 30-year US Treasury yield has surged to 5%, its highest level since July 2025, sparking concerns among crypto analysts that bitcoin may face downward pressure. This yield increase, combined with a strong US dollar and rising inflation expectations, creates an attractive alternative to riskier assets like bitcoin. As a result, investors may rotate their capital out of bitcoin and into bonds, which offer a nearly risk-free return. Experts warn that rising Treasury yields and a stronger dollar have historically led to decreased crypto valuations by tightening financial conditions.
The current economic landscape, with elevated bond yields in the US and other parts of the world, suggests that financial tightening is underway, making borrowing more expensive and discouraging risk-taking in both financial markets and the economy.