Bitcoin under pressure as 2-year yield hits 4.33%, a 2025 high

The US 2-year Treasury yield rose to 4.33%, its highest since February 2025, as oil prices climbed on Iran tensions, squeezing Bitcoin and other risk assets.

Bitcoin came under selling pressure as the US 2-year Treasury yield surged to 4.33%, its highest level since February 2025, data show.

Rising risk-free rates reduce the relative appeal of non-yielding assets such as Bitcoin, as they offer investors a guaranteed return without the volatility of cryptocurrencies, according to macro analysis of the cross-asset impact.

The yield move was driven by a combination of rising oil prices and escalating geopolitical tensions involving Iran, which pushed investors toward safer fixed-income positions. Higher oil prices feed into inflation expectations, reinforcing the case for the Federal Reserve to maintain elevated interest rates — a headwind for risk assets across the board.

If the 2-year yield continues to climb amid persistent geopolitical instability, Bitcoin could face sustained downward pressure. Higher yields may trigger further capital rotation out of cryptocurrencies and into safe-haven assets, with the potential for additional sell-offs across the broader crypto market.

This article is for informational purposes only and does not constitute investment advice.