The yield on the 30-year US Treasury note surged to 5% earlier today, reaching its highest level since July 2025. This significant milestone has been met with concern from crypto analysts, who believe that rising yields will hinder bitcoin's performance.
As yields become more attractive, investors may opt for the perceived safety of bonds over riskier assets like cryptocurrency. The current dynamic, characterized by tight monetary policy and elevated yields, is likely to continue pressuring assets like crypto. Bitcoin is already feeling the strain, trading at $75,670, down 2% over the past 24 hours, while the Dollar Index hovers above 99. The rise in bond yields can be attributed to various factors, including the Fed's decision to maintain interest rates and the internal dissent among voting officials, which has led to expectations of higher interest rates for a longer period.
Additionally, the surge in oil prices has contributed to higher inflation expectations, further driving yields upward. As a result, the macro environment remains challenging for crypto, with the likelihood of capital rotation out of non-yielding risk assets and into more attractive bond investments.