Rising US Treasury yields, driven by inflation and massive government debt, are impacting Bitcoin. Higher yields increase the opportunity cost of holding BTC, leading to outflows from Bitcoin ETFs and reduced trading volume, as institutional investors favor government debt.
US Treasury yields advanced Tuesday, with the 30-year yield reaching a near 19-year high of 5.198%. Investors are dumping bonds due to fears of reignited inflation, potentially leading the Fed to hike rates instead of cut them. This could impact consumer spending, economic growth, and equity valuations.
U.S. Treasury yields climbed Monday due to resurgent inflationary pressures, with the 10-year note hitting a 15-month high. Global markets also saw bond sell-offs, with German and Japanese yields rising, while UK yields eased slightly amid political uncertainty.
