Analysts: US Treasury yields rise to their highest level since Bitcoin's inception, potentially continuing to suppress the performance of risk assets.

According to Mars Finance, crypto analyst Darkfost posted on social media that Bitcoin is currently facing one of the most challenging US Treasury yield environments since its inception. While the US federal funds rate and the dollar index have historically reached higher levels, long-term US Treasury yields remain persistently high, with both 30-year and 10-year yields fluctuating between 4.5% and 5%. This, coupled with rising market expectations of another rate hike this year, has resulted in persistently high funding costs and a tightening liquidity environment. Analysts believe that against this backdrop of high yields, investors are more inclined to allocate to low-risk fixed-income assets, thus weakening the attractiveness of risky assets, including Bitcoin. Historical experience shows that rising US Treasury yields are often accompanied by tightening financial conditions, putting pressure on Bitcoin's price. The market is currently at a critical turning point, and the risk premium offered by risky assets relative to long-term Treasury bonds is being compressed. However, if the future macroeconomic outlook becomes clearer and investors regain confidence in the bond market, capital inflows into the bond market could push yields down, causing the risk premium to widen again, thereby improving the investment environment for risky assets such as Bitcoin. The market generally believes that this process may take several months, and its evolution will largely depend on the development of US government policies and the overall economic situation.