The cryptocurrency market has been stifled as bond yields have risen

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According to billionaire investor Mike Novogratz, the crypto market will continue to be under pressure as bond yields rise. The yield on the US 10-year bond has risen to 1.88 percent in the last five weeks.

Bitcoin has been hanging around a critical level for the past three weeks. Bitcoin will need to retain its current price range of $42,000 to $39,000, or it may fall to the $30,000 level, which it last saw in mid-2021.

Novogratz, the CEO of Galaxy Investment Partners and a former hedge fund manager, is a well-known crypto personality. He has stated that he expects volatility in the coming weeks, and he recently tweeted that if bond yields climb, he expects further pressure on crypto.

Bond yields are on the verge of hitting Novogratz’s aim of 2%. The current yield on US Treasury bonds is 1.88 percent. The recent rise began in mid-December at 1.36 percent and has accelerated in the last five weeks.

Bond yields have begun to rise this year, no doubt due to investors anticipating future Federal Reserve rate hikes, of which at least three are expected this year.

Because crypto and tech stocks are deemed to be more speculative and hence less attractive than risk-free government bonds, this type of atmosphere is generally not favorable.

According to a report published today by Business Insider Australia, investors are concerned about the crypto market’s outlook for 2022. Things will be more challenging this year after the much gentler climate of near-zero interest rates in 2021.

According to the article, both prominent crypto investors, Novogratz and Anthony Scaramucci of Skybridge Capital are waiting to buy more.

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