Bond markets are already reacting. The two-year U.S. Treasury yield jumped to 4.31%, its highest level since February 2025, while the benchmark 10-year yield climbed to 4.66%, its highest level since May, according to TradingView data. Higher yields increase the opportunity cost of holding non-yielding assets such as bitcoin and gold, often prompting investors to abandon speculative investments in favor of fixed-income securities that now offer more attractive returns.
Adding to cautious market sentiment, Axios reported that the US military deployed a B-1 long-range bomber on Tuesday to strike targets linked to Iran’s Islamic Revolutionary Guard Corps. The use of heavy bombers represents a sharp escalation in the scale of US operations and suggests that Washington may be preparing for a broader campaign, rather than continuing the more limited strikes seen in recent days.
Regulatory uncertainty persisted after a group of top Senate Democrats said the latest Digital Asset Market Clarity Act bill “falls short” on ethics and other critical provisions.
Betting markets on decentralized platform Polymarket reacted quickly, with the implied odds of passage of the Clarity Act falling from 46% to 38%.
Senate Republicans released the updated plan Wednesday, which includes an ethics provision agreed to by the White House and President Donald Trump. Senator Bernie Moreno called it “the most powerful ethical language in American history.”
