Bond markets are already reacting. The U.S. two-year Treasury yield jumped to 4.31%, the 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 non-yielding assets such as bitcoin and gold, often causing investors to rotate out of speculative holdings and into fixed income securities that now offer more attractive returns.
Adding to the cautious market sentiment, Axios reported that the US military on Tuesday deployed a B-1 long-range bomber to attack 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 that Washington may be preparing for a wider campaign rather than continuing with the more limited strikes seen in recent days.
Regulatory uncertainty continued after a group of key Senate Democrats said the latest 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 implied odds for the Clarity Act dropping from 46% to 38%.
Senate Republicans released the updated draft earlier 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.
