US bond long-end yields continue to push against market expectations.
The yield on US 30-year Treasury bonds rose to 5.587%, reaching its highest level since May 2004. For risk assets like BTC and ETH, rising long-end rates increase the appeal of risk-free returns, and they also make valuation and discounting pressure heavier at the same time. Source: BlockBeats.
One thing to watch is that if yields stay elevated, it’s usually harder for capital to return to favoring overvalued assets. Another thing to watch is that if yields subsequently pull back, crypto assets will be more likely to regain momentum and see renewed sentiment. Which are you more focused on: whether BTC can first stabilize, or which way the US dollar and real yields are moving?
Figure 1: Long-end Treasury yields keep setting new highs · Source: partial screenshot of the page
Image source: https://www.theblockbeats.info/flash/369595
The yield on US 30-year Treasury bonds rose to 5.587%, reaching its highest level since May 2004. For risk assets like BTC and ETH, rising long-end rates increase the appeal of risk-free returns, and they also make valuation and discounting pressure heavier at the same time. Source: BlockBeats.
One thing to watch is that if yields stay elevated, it’s usually harder for capital to return to favoring overvalued assets. Another thing to watch is that if yields subsequently pull back, crypto assets will be more likely to regain momentum and see renewed sentiment. Which are you more focused on: whether BTC can first stabilize, or which way the US dollar and real yields are moving?
Figure 1: Long-end Treasury yields keep setting new highs · Source: partial screenshot of the page
Image source: https://www.theblockbeats.info/flash/369595
