The yield on two-year US Treasury notes has risen to 4.31%, placing it well above the Federal Reserve’s target range and adding pressure to risk assets, according to Mosaic Asset Company.
Bitcoin has meanwhile tested the $64,000 level, with buyers struggling to preserve the recovery from recent lows.
Geopolitical tensions, rising bond yields and uncertainty over the Federal Reserve’s next moves have weakened investor appetite for risk assets. Mosaic Asset Company said notable shifts were occurring across the Treasury yield curve despite a weaker-than-expected US inflation report.
The two-year Treasury yield is closely watched because it tends to reflect market expectations for Federal Reserve policy. Its latest move suggests traders still believe interest rates could remain restrictive for longer than previously expected.
The latest CME FedWatch data indicates that markets expect the Federal Reserve to leave rates unchanged at its next meeting. However, traders are also pricing in the possibility of a 25-basis-point increase in September and another rate hike before the end of 2026.
Mosaic Asset Company said those expectations were already weighing on major stock indices and other risk-sensitive markets.
Bitcoin Traders See a Familiar Pattern Near $64,000
Bitcoin traders are increasingly focused on whether the cryptocurrency can continue holding the $64,000 region.
Market analyst Wealthmanager highlighted the importance of $64,000, warning that a decisive move below the level could invalidate Bitcoin’s lower-time-frame bullish structure.
Bitcoin is currently attempting to stabilize around the level after losing momentum near recent highs. A sustained defense of $64,000 could allow buyers to rebuild confidence, while a breakdown would increase the probability of another move lower.
Trader and analyst Rekt Capital continues to argue that Bitcoin is following a pattern similar to its 2022 bear-market structure.
Bitcoin recently faced resistance near the 50-month exponential moving average at approximately $65,950.
If the comparison remains valid, BTC could struggle to establish a lasting recovery above the moving average.
Rising Treasury Yields May Not Tell the Whole Story
Rising US Treasury yields remain a major source of pressure on the cryptocurrency market, but the relationship between bond yields and Bitcoin is not always straightforward.
In May 2025, the yield on 30-year US Treasuries climbed to 5.15% while Bitcoin reached a new all-time high. Instead of triggering a crypto sell-off, the rise in yields coincided with demand for alternative assets.
That episode suggests higher yields do not automatically lead to lower Bitcoin prices. In some cases, both can rise when investors become concerned about inflation, fiscal policy or the outlook for dollar-denominated assets.
The current weakness in crypto may therefore reflect portfolio rebalancing and broader uncertainty rather than fears of another Federal Reserve rate hike alone.
10x Research analysts previously warned that even an initial Fed rate cut could temporarily pressure Bitcoin. Investors may interpret the first cut as confirmation that the economy is weakening rather than as immediate support for risk assets.
Is Bitcoin Preparing for Tightening or Easing?
The key question is whether traders are positioning for renewed monetary tightening or preparing for an eventual shift toward lower rates.
For now, Bitcoin remains near $64,000, while rising Treasury yields continue to limit demand for risk assets.
Some traders see signs that large buy orders are helping support the market. Others argue that Bitcoin’s current structure closely resembles the pattern seen during the previous bear cycle.
A sustained move above the 50-month EMA near $65,950 would weaken the bearish comparison. However, a confirmed break below $64,000 could increase the risk of a deeper correction.
