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Rising bond yields could trigger a 30% shock in Bitcoin price amid $1.8T fiscal deficit fears.

Market News
18 Aug 2026
Forbes
View Source
Neutral
Rising bond yields could trigger a 30% shock in Bitcoin price amid $1.8T fiscal deficit fears.

Bitcoin has been trading sideways since June, down about 50% from its October 2025 peak, as the market awaits a major catalyst. Despite BlackRock calling a market bottom, soaring U.S. bond yields—reaching levels not seen since the early 2000s—are causing concern. The $1.8 trillion U.S. fiscal deficit, high oil prices, and uncertainty over Federal Reserve policy are driving yields higher, which could lead to a sharp 30% move in Bitcoin's price, either up or down. Analysts warn that Bitcoin may face another significant drop before stabilizing, especially with upcoming U.S. midterm elections and geopolitical risks affecting markets.

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