Widening US Treasury yield spread could increase downward pressure on Bitcoin

The spread between 2-year and 30-year U.S. Treasury yields has widened to its highest level since 2021, potentially creating downward pressure on Bitcoin, Cointelegraph reports. David Roberts, head of the fixed income division at major South African investment solutions firm Nedgroup Investments, explained that a widening Treasury spread signifies a rise in long-term yields. He noted that a recent sell-off in long-term Japanese government bonds has also contributed to the increase in U.S. Treasury yields. Roberts assessed that a sustained increase in long-term yields could adversely affect Bitcoin, as higher interest rates increase the burden of holding non-yielding assets. This makes assets sensitive to market volatility, such as Bitcoin, more likely to face downward price pressure.