Bitcoin Resists Global Bond Selloff, But Rate Hike Expectations Loom Large
Bitcoin is facing a test of its resilience as global bond yields rise and the U.S. dollar strengthens.
The 10-year Japanese government bond yield has surpassed 3% for a second consecutive session, reaching its highest level in 30 years.
The U.S. 10-year Treasury yield has also reached its highest point since January 2025, while German 10-year bund yields have hit a 15-year high.
These rising bond yields have lifted the value of the dollar and increased the opportunity cost of holding non-yielding assets like Bitcoin and gold.
The market is now pricing in a 66% chance of a September rate hike, up from 35% last week, following Kevin Warsh's hawkish comments at the Jackson Hole symposium.
Bitcoin tends to perform better in low-interest-rate environments due to increased liquidity.