Rising US Treasury Yields Threaten Crypto Market as Capital Drains Continue

The crypto market has been experiencing pressure due to capital draining out of the space. The total market capitalization for digital assets currently stands at $2.17 trillion, with valuations struggling to find a floor.

Fragile economic conditions and potential action from the Federal Reserve pose significant threats to the outlook. Crypto analyst Benjamin Cowen predicts that the U.S. 10-year Treasury yield will continue to rise, potentially reclaiming the 5% mark in the near term.

Cowen notes that rising yields reflect instability in an economy, particularly around inflation. He cites the recent increase in the U.S. 30-year bond yield, which crossed 5.28% on July 31st, its highest level since 2007.