The yield on the 30-year US Treasury note has surged to 5%, its highest level since July 2025, sparking concerns among crypto analysts that rising yields could hinder bitcoin's performance. As bond yields become more attractive, investors may rotate capital out of risk assets like bitcoin, which does not offer a similar yield.
This shift in investment strategy is driven by the US government's need to borrow money, resulting in higher yields on bonds, making them a more appealing option for investors. The rising yields, combined with a stronger dollar and elevated oil prices, are creating a challenging environment for crypto assets.
According to experts, the current market conditions, including the internal dissent within the Federal Reserve and the surge in oil prices, are contributing to the increase in bond yields, ultimately affecting bitcoin's valuation.