The recent surge in oil prices, which increased by 3%, is contributing to a challenging environment for cryptocurrencies, particularly Bitcoin. Following the release of a robust U.S. jobs report, the two-year U.S. Treasury yield climbed to 4.19%, its highest since February 2025.
This rise in yield, which is closely linked to the Federal Reserve's interest rate policies, has soared approximately 80 basis points since the onset of the Iran conflict in late February, with a notable 10 basis point increase just last week.
Market participants are adjusting their expectations, now anticipating a potential interest rate hike rather than the previously expected rate cuts. This shift is creating headwinds for riskier assets, including cryptocurrencies and technology stocks.
