Bitcoin Struggles as Global Bond Yields Soar to 2008 Levels

The global financial market is experiencing elevated bond yields, reaching levels not seen since July 2008. Bitcoin (BTC), created in January 2009, has never faced this level of borrowing costs before and is currently falling as a result.

The Bloomberg Global Long Bond Index yield hit its highest level since July 2008 at around 4.2%. This means that governments are paying more to borrow money, which can have significant effects on the economy.

Historically, investors expected a debt squeeze to benefit assets like Bitcoin due to their scarcity and potential for growth. However, this time it's not benefiting BTC.

The US 10-year bond paid 2.46% on January 2, 2009, but now pays 4.69%. The long end has moved further, with the 30-year paying 2.83% in Bitcoin's first week and selling at 5.216% on August 13.

The real yield, which takes into account inflation, reached 2.41% on August 14, up from 1.77% two years earlier. This makes it more attractive for investors to use government debt to beat inflation without taking on significant risk, rather than investing in Bitcoin.