US Debt Auction Raises Bar for Bitcoin Amid Higher Yields

The US government sold $44 billion of seven-year debt on July 28 and accepted bids at a yield of 4.473%. This was 21.3 basis points higher than June's Treasury auction, where the yield was 4.260%.

Investors can now lend money to Washington for seven years and collect regular interest at a rate approaching 5% before the Federal Reserve makes its next decision.

This has raised the hurdle for Bitcoin (BTC), as it offers no comparable promise of contractual interest, stable returns, or protection from volatility. The Treasury auction wasn't a rejection of US debt but rather a repricing of what investors require to hold it.