The 10-year Treasury yield climbed above 4.5% in April 2025, complicating Scott Bessent's efforts to reduce long-term borrowing costs for the US government. Despite his strategies, including spending restraint and revised tax policies, yields remain high, impacting borrowing costs across sectors. Bessent attributes the yield spike to market disruptions from tariff announcements and leveraged position unwinding.
In the crypto sphere, Bessent remains optimistic about digital assets bolstering the US dollar's dominance. He supports retaining seized Bitcoin holdings, now valued at over $15 billion. However, rising yields could divert capital from cryptocurrencies to safer government bonds, as Bessent lacks authority to bail out digital assets, leaving investors vulnerable to market shifts.
Rising Treasury Yields Challenge Crypto Market Amid Bessent's Efforts
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