U.S. Treasury yield rise, Positive impact on BTC expected

As the 10-year U.S. Treasury yield rises, an analysis has emerged suggesting it could act favorably for Bitcoin (BTC). CoinDesk cited multiple analysts, reporting "The 10-year U.S. Treasury yield recently reached 4.5%, marking the highest since April 11."

Generally, when risk-free yields rise, there is a tendency for money to flow out of risky assets like stocks or cryptocurrencies. However, this rise in Treasury yields has been interpreted as stemming from expectations of President Donald Trump's fiscal expansion policies.

Particularly, amid the political trend of "debt and deficits don't matter," both parties are entering a large-scale spending competition to win the midterms, which is expected to have a positive impact on gold, Bitcoin, and the stock market. On the other hand, it is analyzed that it may act as a negative factor for Treasuries.

Market experts evaluate that this rise in Treasury yields could stimulate Bitcoin buying as a means of hedging against inflation, and the uncertainty in traditional financial markets may promote capital shifts toward cryptocurrencies.