Latest Research: Increasing US Treasury Sends Response Letter to Bitcoin and Stocks Through Loan Cost Escalation

A comprehensive study identifies a significant correlation between the surge in US government bond yields and pressures on high-risk assets including cryptocurrencies and global stocks. Recent data shows that current market dynamics reflect the widespread impact of fiscal and geopolitical policies on the global financial ecosystem.

Research Data Reveals Treasury Yields Hit Four-Month Highs

Market analysis studies indicate that the 10-year US Treasury yield has jumped to 4.27 percent, marking the highest level since September 3, according to TradingView data. The research findings reveal that any change in this “risk-free” benchmark rate triggers a domino effect across the global financial ecosystem, from Wall Street to Shanghai.

The transmission mechanism identified in this research is very clear: when Treasury yields rise, major banks automatically increase interest rates on all loan products—from mortgages, corporate loans, to consumer credit. As borrowing costs in the real economy increase, investors rationally withdraw from high-risk assets to shift into safer instruments. Bitcoin has fallen more than 1.47 percent in the last 24 hours, reaching $88.02K, while Nasdaq futures—an index dominating the tech sector on Wall Street—declined by 1.6 percent.

This research refers to the tightening of global financial conditions as “financial tightening,” a situation that creates tangible barriers to capital mobility and prompts risk revaluation in financial markets. This pattern particularly impacts Bitcoin and other cryptocurrencies that require a high risk appetite from institutional investors.

Market Response Letter: Trump Tariffs and European Bond Speculation as Main Triggers

In-depth market analysis by experts identifies the primary triggers behind the surge in Treasury yields. The threat of tariffs announced by President Donald J. Trump against eight European countries—initially at 10 percent from February 1 and escalating to 25 percent on June 1—has sparked concerns about possible retaliatory asset sales from Europe.

Market speculation suggests that European bondholders could use their holdings of US assets worth $12.6 trillion as pressure instruments, including Treasury debt and corporate stocks. Although analysts note that the implementation of such retaliatory sales might be limited given that most assets are privately held, this has created market anticipation that drives bond prices down and yields up.

The research report notes that this risk perception is not just a US phenomenon but is reflected in Japanese government bond movements, which also experienced yield increases in response to the proposed food tax cuts by Prime Minister candidate Sanae Takaichi. This global trend indicates that markets broadly project higher fiscal spending and increased bond issuance in advanced economies.

Global Research Uncovers Yield Patterns Across Developed Markets

Cross-country research shows that the surge in US Treasury yields has triggered interest rate increases worldwide. Foreign giants like China and Japan, holding trillions of dollars in US Treasury bonds, are key drivers of this market dynamic, as each movement in yields directly impacts their investment calculations.

Market analyst data also reveal significant risk concentration in Bitcoin’s price curve: approximately 63 percent of total invested Bitcoin wealth has a cost basis above $88,000, while supply concentrated between $85,000 and $90,000, combined with thin technical support below $80,000. This structure indicates market vulnerability to technical sell-offs if prices break through key support levels.

This research concludes that the market’s response through the mechanism of global financial tightening is a major deterrent factor for high-risk assets. Investors seeking to understand cryptocurrency and stock dynamics in this phase should consider not only the fundamental aspects of these assets but also the macroeconomic conditions, expansionary fiscal policies, and increasingly complex geopolitics as integral parts of their investment research.