US Treasury Yield Hits 5%: Stocks and Bitcoin in the Crosshairs

The US Treasury yield has crossed the 5% threshold for the first time in three years, reaching its highest level since September 2019.

This development has sent shockwaves through financial markets, with analysts warning of potential pressure on stock valuations and Bitcoin (BTC) prices.

According to Antony Ghee, head of equity investments for the chief investment office at Merrill and Bank of America Private Bank, a sustained climb past 5% would be the 'greatest near-term concern for stocks'.

Rising yields make government bonds more attractive to investors, who can now lock in strong, low-risk returns without taking on stock market risk. This could squeeze stock valuations and cut into company profits, which in turn support stock prices.