U.S. Treasury yields could reach 6% and impact Bitcoin

Market strategist Rick Bensignor, founder of Bensignor Investment Strategies, suggests that the U.S. 10-year Treasury yield could climb toward 6.07%. While the yield currently trades around 4.78%, Bensignor identifies a multi-year upward trend, setting a minimum upside target of 5.6%.

This potential shift represents a significant test for various asset classes, including stocks, bonds, gold, and Bitcoin. Bitcoin has primarily grown during an era of low interest rates and high liquidity; a structural move toward higher yields could pressure the cryptocurrency.

Rising yields typically attract capital toward safer, income-generating assets, which may challenge Bitcoin’s 'debasement trade' narrative. This narrative links Bitcoin's value to concerns regarding U.S. federal debt, which has surpassed $40 trillion. If yields continue to rise while Bitcoin remains range-bound, the disconnect between debt concerns and Bitcoin's price could widen.