Bitcoin’s Stock Correlation Rises as Treasury Yields Hit a 2008 High

Bitcoin (BTC) has become more exposed to U.S. stock-market declines as its correlation with equities has risen again, leaving macroeconomic pressures more prominent in the crypto market outlook.

The 10-year Treasury yield neared 5.35%, its highest level since 2008. Higher yields raise the opportunity cost of holding assets that generate no income and drain liquidity from markets.

Bitcoin and U.S. stocks had moved independently for nearly two months before their correlation increased again, changing Bitcoin’s risk profile. The shift leaves Bitcoin more vulnerable to declines in stocks during periods of stronger correlation.

The altcoin market also recorded its first weekly decline after a run of gains. Funds flowed into micro-cap coins that had lagged earlier, with the micro-cap rebound described as being in its late stage.