HBAR Under Pressure as Rising Treasury Yields Make Safer Investments Attractive

Hedera's HBAR token may face increasing pressure as rising U.S. Treasury yields make safer investments more attractive to investors, according to analyst Cheeky Crypto.

The 30-year Treasury yield has risen above 5.2%, a level not seen since 2007, while the Federal Reserve held its policy-rate target range at 3.5% to 3.75% with three officials favoring a further quarter-point increase.

Cheeky Crypto argues that HBAR's tokenization efforts and enterprise infrastructure initiatives may not be enough to overcome the hurdle of rising Treasury yields, which make government debt more competitive and raise the discount investors apply to distant growth expectations.

The analyst suggests three signals to determine whether pressure eases on HBAR: long-term Treasury yields, dollar liquidity, and sustained trading volume. If yields fall, liquidity improves, and HBAR volume strengthens together, the hurdle for a repricing could decline.