The 30-year US Treasury yield has climbed to 5.198%, levels not seen since before the 2007-2008 financial crisis. Combined with the 10-year note at 4.687%, the ripple effects are extending from Wall Street bond desks to digital asset markets.
For investors, a 5% risk-free return on government debt makes volatile, non-yielding assets less appealing. Bitcoin has felt this pressure: weekly outflows from US spot Bitcoin ETFs reached $700 million as yields spiked. The price fell below $82,000 with thinning trading volumes.
Tokenized US Treasuries, however, are thriving. The category has grown approximately 70% year-to-date to $15.35 billion, offering DeFi protocols and stablecoin holders a way to capture real-world yields in crypto markets.
The persistence of these elevated yields signals markets are pricing in sustained inflation concerns and geopolitical tension. Holding non-yielding digital assets now carries a measurable opportunity cost, and institutional money may continue to rebalance if yields remain high.