Between Rising US Bond Yields and Surging Cryptocurrencies: Financial Markets Face Pivotal Shifts

Global financial markets are experiencing sharp fluctuations,
driven by the rise in U.S. Treasury yields and increased investment in cryptocurrencies amid growing regulatory optimism.

Contents

Bonds
Bitcoin

Bonds

U.S. Treasury Yields Surge Amid Weak Auction and Mounting Debt Concerns

U.S. Treasury yields continued to rise on Wednesday as investor concerns over the country’s fiscal outlook intensified,
following weak results from a long-term government bond auction.
The yield on 30-year Treasury bonds jumped by 10.8 basis points to reach 5.075%,
surpassing the 5% mark for the second time this week,
signaling ongoing selling pressure on government debt instruments.
Meanwhile, the yield on the benchmark 10-year bonds—
widely seen as a global measure of long-term interest rates—rose by 10.4 basis points to 4.585%,
and the 2-year bond yield climbed 4.1 basis points to 4.011%.

Investors are closely monitoring developments in Congress regarding new tax cut proposals being pushed by President Donald Trump,
which have sparked fears of a potential deterioration in the federal budget and an escalation of the national debt.
In this context, the U.S. Treasury conducted a 20-year bond auction, raising $16 billion.
However, demand was weak, resulting in a coupon yield of 5%—
the highest since the government resumed issuing bonds of this maturity in 2020.

Bitcoin

Hits Record High Backed by Regulatory Optimism and Rising U.S. Investment

Cryptocurrencies recorded strong gains on Wednesday amid a wave of optimism over the future
of regulatory clarity in the sector and a growing pace of U.S. corporate investments in digital assets.
Bitcoin rose by 2.35% to reach $109,140.11 as of 7:19 p.m. Mecca time, after hitting a new session high of $109,500 earlier.
Ethereum—the second-largest cryptocurrency by market capitalization—gained 3.58% to reach $2,578.96, while Ripple increased by 2% to $2.4035.
Dogecoin, backed by Elon Musk, jumped by 3.39% to $0.2339, and the Trump-themed token soared by 12.85% to $14.91.

Data shows that Bitcoin currently dominates 63.2% of the total cryptocurrency market cap.
This strong performance comes as investors appear to have overcome the shock of the tariff measures announced
by President Donald Trump in early April,
with the market entering a clear upward trend since April 20.

Between Rising US Bond Yields and Surging Cryptocurrencies: Financial Markets Face Pivotal Shifts

Between Rising US Bond Yields and Surging Cryptocurrencies

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