U.S. Treasury Yield Hits Highest Since November 2023 – Coincu

On May 19, 2023, U.S. 30-year Treasury bond yield rose to 5.02%, marking the highest level since November 2023.

This rise suggests shifting risk dynamics, affecting both traditional and digital assets, as market eyes Federal Reserve’s next move.

U.S. Treasury Yield Spike Signals Risk Shift from Cryptos

The rise in the U.S. Treasury bond yield, reaching 5.02%, presents enhanced fiscal risk and suggests a potential shift in market sentiments away from risk assets such as cryptocurrencies. Major figures like Mansoor Mohi-uddin and Peter Schiff have commented on the implications of this considerable increase.

Higher yields lead to increased capital costs, influencing both traditional and digital markets. U.S. Treasury securities are traditionally seen as safe havens, thus potentially driving investors out of volatile assets.

“The deteriorating fiscal situation in the United States supports the view that long-term U.S. Treasury yields will rise over time … substantial U.S. deficits and inflation may compel the Federal Reserve to maintain higher interest rates for an extended period.” — Mansoor Mohi-uddin, Chief Economist, Bank of Singapore

Renowned economist Peter Schiff predicted a possible market crash without swift action from monetary authorities. Mansoor Mohi-uddin from the Bank of Singapore opined that the fiscal situation might maintain higher rates for a prolonged period.

High Yields Pose Pressure on Bitcoin Amid Fiscal Shifts

Did you know? Historical spikes in U.S. Treasury yields have repeatedly led to downward movements in Bitcoin prices, illustrating the strong connection between global fiscal policies and crypto market dynamics.

Bitcoin (BTC) is currently valued at $103,213.85, with a market cap of $2.05 trillion according to CoinMarketCap. In a 24-hour period, BTC experienced a trading volume of $63.32 billion, despite a slight 0.73% decline. Its recent price trends show an 8.46% increase over the past 90 days.

The Coincu research team emphasized the potential for tighter fiscal policies to exert pressure on crypto assets globally. Analysts highlight that sustained high yields may cause prolonged capital shifts from high-risk to safer assets like U.S. Treasuries. U.S. Treasury yields continue to rise.