The US 30-year Treasury yield closed at 5.02% on May 14, marking the first time since October 2023 that it has surpassed the 5% threshold. This development has raised concerns across financial markets, as similar past events led to sell-offs in equities and cryptocurrencies. The rise in yields is primarily driven by inflation fears linked to geopolitical tensions, escalating energy costs, and increased defense spending, which have heightened expectations of persistent inflation. The surge in yields is also attributed to the US government's large deficits and increased Treasury issuance, which have pressured bond prices downward. As yields rise, investors demand higher compensation for holding long-term government debt, reflecting uncertainty about the US fiscal trajectory. This environment has historically led to underperformance in risk assets, including cryptocurrencies, as investors shift towards assets offering stable returns. The impact on the crypto market is significant, with rising real yields correlating with altcoin underperformance and increased stablecoin dominance. Higher Treasury yields also pressure DeFi lending rates, tightening credit conditions and reducing speculative activity. If yields continue to rise due to persistent deficits and inflation, the negative impact on risk assets could be prolonged.