The 30-year US Treasury yield has reached 5%, a level only tested twice in the past two decades, prompting concerns among crypto analysts about the potential impact on bitcoin. As yields rise, bonds become more attractive, potentially leading to a rotation of capital out of non-yielding risk assets like bitcoin.
The rising yields, combined with a stronger dollar and elevated oil prices, are creating a headwind for crypto valuations. Experts warn that as long as yields remain high and the Federal Reserve's monetary policy stays tight, capital will favor yield and safety over volatility, putting pressure on assets like bitcoin.