Rising US Treasury yields dampen demand for BTC, other high-risk assets

Rising U.S. Treasury yields are weakening investor sentiment for high-risk assets like Bitcoin (BTC), according to a CoinDesk analysis. The outlet noted that the appeal of allocating funds to BTC is diminishing as government bond yields rise in the U.S. and other major countries. Additionally, geopolitical tensions related to Iran are stoking fears of supply disruptions in the Strait of Hormuz, prompting some speculative capital to shift toward commodities such as crude oil, copper, and sulfur. This trend is reflected in continued outflows from U.S. spot BTC ETFs, which recorded approximately $1.26 billion in net outflows this week, marking the largest weekly withdrawal since January of this year. Combined with about $1 billion in outflows from the previous week, the cumulative net outflow over the past two weeks has surpassed $2.26 billion.