Bond markets are already reacting. The two-year US Treasury yield jumped to 4.31%, its highest level since February 2025, while the benchmark 10-year yield rose to 4.66%, the highest since May, according to TradingView data. Higher yields increase the opportunity cost of holding unprofitable assets like bitcoin and gold, often leading investors to abandon speculative holdings and opt for fixed income securities that now offer more attractive returns.
Adding to the 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 the heavy bomber represents a clear escalation in the scale of US operations and suggests 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 key Senate Democrats said the most recent draft of the Digital Asset Market Clarity Act (Clarity Act) “falls short” on ethics and other critical provisions.
Betting markets on the decentralized platform Polymarket reacted quickly, with the implied odds of the Clarity Act passing falling from 46% to 38%.
Senate Republicans released the updated draft early 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.
