U.S. Treasury Yield Reaches 5.058%; Impact on Bitcoin and Gold

The yield on 30-year U.S. Treasury bonds reached 5.058% in the auction on July 9, marking the highest level since 2007. In this auction, the U.S. government sold $22 billion in bonds, with demand 2.44 times the amount offered. Foreign investors purchased nearly 78% of these bonds. The increase in yield indicates a greater market demand for accepting the risk of U.S. debt and long-term financing. Despite these conditions, Bitcoin rose more than 2% yesterday, returning to the $64,000 range. Analysts believe that concerns about rising U.S. debt and financing costs have attracted investors to alternative assets like Bitcoin. In contrast, gold is under selling pressure, retreating to the $4,100 to $4,120 range. The increase in bond yields has reduced the attractiveness of investing in non-yielding assets like gold, and the continued outflow from ETFs has intensified selling pressure. Ongoing increases in bond yields could lead to greater volatility in Bitcoin and altcoins, but concerns about U.S. government debt may increase demand for Bitcoin. Traders are awaiting the release of inflation statistics and the results of upcoming bond auctions.

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