Bitcoin Defies Rising Yields as Analyst Sees Stronger Growth

Bitcoin's resilience against rising Treasury yields has challenged the conventional view that higher long-term rates are automatically bearish for risk assets. Despite the 30-year Treasury yield surging to a 24-year high of 5.63% and the 10-year Treasury yield rising roughly 135 basis points since late 2023, BTC has approximately doubled.

Mark Moss, a financial educator and host of Market Disruptors, believes the yield curve will steepen as short-term rates fall while longer-term yields stay elevated, potentially supporting bank lending and liquidity.

Moss argues that the traditional framework of higher rates being bad for risk assets and lower rates being good is too simplistic. He points out that a 10-year Treasury yield above 5% does not necessarily signal market trouble.

Moss identifies two potential forces behind higher long-term yields: fiscal pressure from mounting U.S. debt and expectations for stronger economic growth. He favors the latter explanation, citing growing investment in AI, infrastructure, and other technologies that boost productivity.

In this scenario, higher yields could reflect stronger expected growth rather than financial stress alone. Moss believes that Bitcoin can gain from monetary debasement and easier financial conditions, like gold, while also participating in a technology-driven economic expansion.