Rising U.S. Treasury Yields Put Pressure on Crypto Market

The crypto market is under pressure due to rising U.S. Treasury yields, which could lead to further selling of Bitcoin and other digital assets.

Crypto analyst Benjamin Cowen predicts that the 10-year Treasury yield will continue to rise and reclaim the 5% mark in the near term, which would put pressure on the Federal Reserve to raise interest rates.

A rising yield reflects instability in an economy, particularly around inflation, and can lead to a restriction of capital flow into risk assets like cryptocurrencies.

Cowen pointed out that even when the Fed cuts rates, yields do not automatically decrease, citing the example of 2024-2025 when interest rates were cut from 5.5% to 3.75%, but the 30-year bond yield is now higher than it was then.

The impact of a rising yield on cryptocurrencies is clear: tighter conditions restrict capital flow, pushing investors toward safer assets and away from riskier bets like Bitcoin.