US Treasury yields jump… Bitcoin retreats from its peak

US 10-year Treasury yields hit their highest levels since February, while 30-year yields jumped to their highest point since November 2023, sparking sharp volatility in financial markets. Bitcoin, which had reached $110,000, has reconnected with traditional assets after appearing detached from them during its recent rally. Rising yields are interpreted as an expectation of continued high interest rates, which is reducing investor appetite for riskier assets such as cryptocurrencies.

In this context, the opportunity cost of holding non-yielding assets like Bitcoin is rising, leading to clear selling pressure. Institutional investors appear to be shifting their liquidity toward safer instruments amid growing signs that the Federal Reserve will maintain a tight monetary policy. On-chain data indicates increased transfers to exchanges, indicating liquidation intent, while derivatives markets show increased hedging activity, declining funding rates, and stable open interest.

If yields continue to rise, Bitcoin could face further pressure unless inflation data shows a slowdown or the Federal Reserve issues dovish signals.