CoinDesk analysis: 6% US 10-year yield may not harm BTC

A rise in the U.S. 10-year Treasury yield to 6% may not negatively impact BTC if driven by concerns over fiscal deficits and government debt, according to CoinDesk. Markus Thielen, founder of 10x Research, noted that higher Treasury yields typically affect BTC negatively due to Federal Reserve rate hikes, but the effect varies when yields increase due to fiscal instability. Thielen anticipates the 10-year yield could reach 6% in the coming months. CoinDesk stated that yield increases linked to fiscal instability could support alternative assets like BTC. The analysis highlighted that BTC fell 64% in 2022 during the Fed's aggressive tightening but has roughly doubled since late 2023, despite a 1.35 percentage point rise in the 10-year yield. CoinDesk warned that similar downside pressure to that of 2022 could return if the Fed resumes aggressive rate hikes.

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