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<div class="key-points-section">
 <strong>Key Points:</strong>
 <ul>
  <li>10-year U.S. Treasury yields projected to be 4%-4.5% by 2026</li>
  <li>Impact on equities and cryptocurrencies as financial conditions tighten</li>
  <li>Potential reaction of market sentiment and historical market movements</li>
 </ul>
</div>
<p>iCapital's 2026 Market Outlook reports the 10-year U.S. Treasury yield could range between 4% and 4.5%, potentially reaching the upper limit in the year's latter half.</p>
<p>This yield increase could pressure risk assets, including equities and cryptocurrencies, as historical precedents show a correlation with market declines.</p>
<h2 id="key-developments-impact-and-reactions">Key Developments, Impact, and Reactions</h2>
<p>iCapital's outlook report, under the leadership of CEO Lawrence Glazer, projects a significant trading range for 10-year U.S. Treasury yields by 2026 at 4% to 4.5%, suggesting an escalation during the year's second half. <strong>Key market players</strong> worry about the effects of widening deficit forecasts, which are highlighted as potential catalysts for yield hikes. Crucially, these shifts <strong>emphasize potential ramifications</strong> for equities and cryptocurrencies, with possible weakening pressures.</p>
<p>No specific indicators of community sentiment or industry statements are directly associated with iCapital's projections. However, a previous example saw the S&amp;P 500 drop by approximately 5% when yields escalated around two standard deviations, underscoring the strength of <strong>market pessimism</strong> should yields rise. <strong>No major reactions</strong> from key figures like Vitalik Buterin or any industry regulators have been observed.</p>
<blockquote>
 "We project the 10-year U.S. Treasury yield will be in a 4.0%-4.5% range for 2026, which may exert pressure on risk assets." — Lawrence Glazer, CEO, iCapital
</blockquote>
<h2 id="bitcoin-faces-decline-amid-rising-treasury-yields">Bitcoin Faces Decline Amid Rising Treasury Yields</h2>
<p><strong>Did you know?</strong> U.S. Treasury yield increases have historically coincided with notable declines in the S&amp;P 500, hinting at how current yield projections could affect equities similarly when they approach the upper range of 4.5%.</p>
<p>Data from CoinMarketCap shows Bitcoin (BTC) recently trading at $86,774.77, reflecting a decline of 3.83% over the past week and 3.30% over the last month. With a circulating supply of 19,963,612, Bitcoin's market dominance stands at 59.50%. The cryptocurrency's market cap is valued at $1.74 trillion.</p>
<figure class="wp-block-image aligncenter size-large">
 <a href="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-0712-UTC-on-December-18-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-0712-UTC-on-December-18-2025file.jpeg" alt="bitcoin-daily-chart-5096"> </a>
 <figcaption>
  Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 07:12 UTC on December 18, 2025. <em>Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">CoinMarketCap</a></em>
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</figure>
<p>Coincu's research team suggests that broad financial pressures could arise if 10-year yields keep climbing. <strong>Such conditions might spawn shifts</strong> in investor strategies, with a possible re-evaluation of risk preferences among bonds, equities, and cryptocurrencies alike.</p>
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    <td><em><strong>DISCLAIMER</strong>:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</em></td>
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</figure> <a href="https://coincu.com/uncategorized/treasury-yields-impact-crypto-2026/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Rising U.S. Treasury Yields Pose Risk to Crypto and Equities

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