The correlation between Bitcoin and the U.S. 10-year Treasury yield has exceeded 0.6 in 2026, reaching an all-time high according to Fidelity Digital Assets. This positive correlation emerges as the 10-year yield hits its highest level since Bitcoin's inception, with both assets rising significantly over the past two months—Bitcoin gaining nearly 30% and yields climbing more than 10%. U.S. federal debt has surpassed $40 trillion for the first time, pushing interest expenses above Medicare to become the second-largest federal budget item. Fidelity notes that Bitcoin's fixed supply and transparent issuance mechanism are increasingly positioning it as a hedge against currency devaluation and sovereign debt risk amid mounting fiscal pressure. If current trends persist, interest payments may soon become the largest expenditure in the federal budget.