Analysts: U.S. bond yields rise to highs since the birth of Bitcoin or continue to suppress the performance of risky assets

Cryptography analyst Darkfost posted on social media that Bitcoin is currently facing one of the most severe U.S. bond yield environments since its birth. Although the U.S. federal funds rate and the U.S. dollar index have reached higher levels in history, the current U.S. long-term U.S. bond yields continue to remain high, and the 30-year and 10-year U.S. bond yields both fluctuate between 4.5% and 5%. The market's expectation of another interest rate hike during the year has increased, resulting in capital costs remaining high and a tight liquidity environment. Analysts believe that in the context of high yields, investors are more inclined to allocate low-risk fixed-income assets, thus weakening the appeal of risky assets including Bitcoin. Historical experience shows that rising U.S. bond yields are often accompanied by tightening financial conditions and put pressure on the trend of Bitcoin. The market is currently at a critical turning point, and the risk premium provided by risky assets relative to long-term treasury bonds is being compressed. However, if the macroeconomic outlook becomes clear in the future, investors re-establish confidence in the bond market, funds flow into the bond market or push yields down, and the risk premium will expand again, thereby improving the investment environment for risky assets such as Bitcoin. The market generally believes that this process may take several months, and its evolution path will largely depend on the development of U.S. government policies and the overall economic situation.