Between October 23–24, 2025, U.S. Treasury yields jumped across the curve, triggering renewed stress in fixed income markets and rippling into crypto and risk assets. The 10-year yield climbed from about 3.90% to 4.17%, while the 2-year note spiked beyond 4.5% as investors braced for more hawkish Fed signals.
What’s Driving the Yield Shock?
- Sticky inflation data and signs of resilient consumer spending have undermined expectations of imminent rate cuts, forcing bond investors to reprice.
- A rotation out of safe-haven government debt into equities and commodities has pressured bond prices further downward.
- With yields rising, the opportunity cost of holding non-interest-bearing assets — like Bitcoin and other cryptos — has climbed, creating headwinds for risk-on flows.
Impact on Crypto & Digital Assets
The surge in yields has injected volatility into crypto markets:
- Some institutional flows have paused or reversed, as treasury and fixed-income instruments become more competitive in yield.
- Digital asset investors are watching closely: if real yields stay elevated, the relative attractiveness of non-yielding assets may wane.
- On the flip side, if central banks signal monetary easing, the rebound in bond markets could further fuel capital flows into crypto — reinforcing the narrative of digital assets as alternative stores of value.
