Bitcoin Holds Near $64,000 as Treasury Yields Jump on Fed Decision

The 30-year US Treasury yield is a key benchmark for long-term borrowing and global asset valuations, influencing mortgages, corporate financing and investors’ required returns. Its rise toward levels last seen before the global financial crisis increases the appeal of risk-free government debt and raises the opportunity cost of holding non-yielding assets such as Bitcoin, tightening financial conditions and weighing on risk appetite.

The 30-year yield climbed above 5.2%, its highest level since 2007 and a near 19-year peak. Pressure intensified after three Federal Reserve officials made an unusually coordinated case for higher interest rates, reinforcing expectations that policy could remain restrictive or tighten further. The combination of a Treasury selloff and hawkish Fed signals pushed Bitcoin below the $80,000 threshold as investors cut exposure to risk assets.

The US Treasury yield curve reflects market expectations for the economy and monetary policy. When the two-year yield closes in on the 10-year yield, it indicates that investors expect the Federal Reserve to keep interest rates high for longer. That makes returns on fixed-income assets more attractive and raises the opportunity cost of holding non-yielding risk assets such as bitcoin.

The spread between 10-year and two-year US Treasury yields has continued to narrow recently, reaching its tightest level since April 2025 and leaving the yield curve markedly flatter. The shift signals a hawkish Federal Reserve policy stance. If markets push back their expectations for interest-rate cuts further, the change could curb flows into bitcoin and create a headwind for its recent bull run.

Bitcoin is highly sensitive to expectations for U.S. interest rates and liquidity, while Federal Reserve rate decisions often drive crypto-asset valuations. Markets are now focused on how Chair Jerome Powell will assess changes in inflation and oil prices. His remarks could shape expectations for rate cuts and determine whether capital continues flowing into risk assets.

Bitcoin briefly touched $76,000 ahead of the Federal Open Market Committee's April 29 decision before retreating to around $74,000, including a short-lived intraday drop below $75,000. Ether, meanwhile, approached $2,200. Traders turned cautious and watched for signs of a hawkish tilt in Powell's post-meeting comments.