Why Rising Treasury Yields Raise the Bar for Bitcoin to Attract Investors

Rising Treasury yields make government bonds more attractive by offering higher returns with comparatively low risk, raising the opportunity cost of holding volatile, non-yielding Bitcoin. This can dampen demand for Bitcoin and put pressure on its price, particularly among investors weighing risk-adjusted returns. Bitcoin must offer stronger expectations of appreciation to compete, though its longer-term appeal may still depend on factors such as adoption and perceived scarcity.