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U.S. long-term yields shock hits bitcoin, raising liquidity pressure risk

Bitcoin is facing a direct shock from rising U.S. long-term interest rates after the 30-year Treasury yield topped 5.3 percent for the first time since 2007. Market participants cite concern over the U.S. fiscal path and a jump in corporate bond issuance tied to expanding AI investment. Galaxy Digital reported crypto collateralised lending has fallen sharply from its peak. DeFi borrowing has also dropped, while futures open interest has risen again.