Rising Treasury Yields Threaten Crypto Market, Fed Rate Hike Looms

The crypto market is under pressure as capital drains out of the space, causing total market capitalization to hover near $2.17 trillion.

Fragile economic conditions and the prospect of fresh action from the Federal Reserve remain a key threat to the outlook, which could weigh further on price performance across the board.

Crypto analyst Benjamin Cowen expects the U.S. 10-year Treasury yield to keep gaining strength and sees a high chance of it reclaiming the 5% mark in the near term.

A rising yield reflects instability in an economy, particularly around inflation, and Cowen’s prediction lands as the U.S. 30-year bond yield crossed 5.28% on July 31st, one of its highest levels since 2007.