Bitcoin Falls as Global Bond Yields Reach Highest Level Since 2008

Global bond yields have reached levels not seen since July 2008, and Bitcoin is struggling to keep up. The Bloomberg Global Long Bond Index yield has surged to around 4.2%, its highest level since July 2008.

The surge in long-term government borrowing costs is having a direct impact on the price of Bitcoin, which fell 46% over the past year, while gold rose 32%. Investors who bet that a debt crisis would boost the value of scarce assets like Bitcoin are now rethinking their strategy.

Bitcoin's whitepaper was published in October 2008, and the first block was created six months later. The asset was designed as an alternative to government-issued currencies, but it has never had to prove its worth in a market with such high yields.