Bitcoin Defies Rising Yields, May Reach $1 Million by 2030
Bitcoin has shown remarkable resilience in the face of rising Treasury yields, defying conventional wisdom that higher long-term rates are bearish for risk assets. Despite the 30-year Treasury yield reaching a 24-year high of 5.63% and the 10-year Treasury yield increasing by roughly 135 basis points since late 2023, Bitcoin has approximately doubled in value.
Financial educator Mark Moss attributes this unexpected resistance to a potential steepening of the yield curve, which could support bank lending and liquidity. He also suggests that the bond market may be pricing in stronger economic growth, driven by massive investment in technologies like AI and infrastructure.
Moss believes that higher yields could reflect stronger expected growth rather than financial stress alone. This environment could benefit Bitcoin from two separate forces: monetary debasement and easier financial conditions, as well as participation in a technology-driven economic expansion.