Bond Yields Soar to 2008 Levels, Weighing on Bitcoin

Global long-term government bond yields have reached their highest levels since July 2008, hitting around 4.2%. This surge in borrowing costs has significant implications for Bitcoin, which has fallen 46% over the past year. Meanwhile, gold has risen by 32% during the same period.

The elevated real yields mean investors can now earn returns above inflation with low risk from government bonds. As a result, the appeal of Bitcoin as an investment option has diminished, given that it pays no yield.

Investment advisor Ross Gerber criticized Bitcoin's practical use, stating that gold remains easier to use in daily transactions despite Bitcoin's promises as a global payment system.