CoinDesk says 6% US 10-year yield would not necessarily hurt BTC

A rise in the U.S. 10-year Treasury yield to 6% would not necessarily be negative for BTC if it is driven by concerns over fiscal deficits and government debt, according to a CoinDesk analysis. Markus Thielen, founder of 10x Research, said higher Treasury yields tend to weigh on BTC when they rise because of Federal Reserve rate hikes, but the impact differs when yields climb on fiscal instability. Thielen said the 10-year yield could rise to 6% in the coming months. CoinDesk said yield increases tied to fiscal instability could instead support alternative assets such as BTC. The outlet added that BTC fell 64% in 2022 amid the Fed’s aggressive tightening, but has roughly doubled since late 2023 while the 10-year yield rose 1.35 percentage points. CoinDesk said downside pressure similar to 2022 could reappear if the Fed resumes aggressive rate hikes.