U.S. Treasury yield spreads have reached their highest level since 2021, as global long-term interest rates continue to rise. This development is prompting a cautious outlook on risk assets, including Bitcoin, according to Cointelegraph. David Roberts of Nedgroup Investments highlighted that rising yields could exert downward pressure on global equities, particularly affecting long-term government bonds.
The increase in long-term yields raises the opportunity cost of holding non-yielding assets, diminishing the appeal of high-beta risk assets like Bitcoin. Additionally, gold's current strength poses another challenge for Bitcoin. Bloomberg Intelligence's Mike McGlone noted that gold is experiencing a significant phase of capital inflows, which could further complicate Bitcoin's ability to reach key psychological levels, such as $100,000, if investors continue to prefer low-volatility value storage assets.
U.S. Treasury Yield Spread Hits 5-Year High, Pressuring Bitcoin
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