Wall Street’s biggest bears have gone quiet on 5% Treasury yields. Bank of America Private Bank Chief Investment Officer Chris Hyzy says the level no longer scares stocks the way it once did.

The bigger question is whether Bitcoin can also fight off the bear case high treasury yields can bring for risk-on assets. While equities shrug off higher rates, Bitcoin (BTC) has spent 2026 losing the fight for the same money.

Why 5% Doesn’t Scare Stocks Anymore

Speaking on CNBC’s Closing Bell, Hyzy said $9 trillion sits in money funds and deposit accounts. Investors earning two to three points above inflation feel less pressure to chase risk.

“Five is not the negative that it once was,” Hyzy said, pointing to how much cash sits in the system.

Sonali Basak, chief investment strategist at iCapital, agreed the flight to quality favors well-capitalized companies.

Highly leveraged firms extending debt on thin margins face a tougher road. Ritholtz Wealth Management’s Josh Brown said earnings momentum is driving stocks higher, not fear of missing out.

Bitcoin Hasn’t Gotten the Memo

The math looks different for an asset that pays no yield at all. The 30-year Treasury yield has topped 5.3% this year, including a 5.27% reading on Aug. 14, its highest level since 2007. Artificial intelligence (AI) hyperscalers are now competing with Washington for the same lenders.

Over that stretch, Bitcoin has fallen 46% while gold gained roughly 33%. BeInCrypto has also found that bond yields aren’t lifting Bitcoin the way they once boosted gold.

The bull case still exists. Rising yields partly reflect a widening fiscal deficit. That debt-fueled backdrop first drew investors to Bitcoin’s fixed supply as an inflation hedge.

Alphabet and Meta priced corporate bonds paying 6.4% to more than 7.5% this year. That is a bar Bitcoin’s price has not cleared since global yields last sat this high.

For now, that scarcity argument is losing to the yield trade. Bitcoin is holding above $64,000 after its recent rally. It has yet to pull in much of the $9 trillion parked in cash.

Wednesday’s Federal Open Market Committee (FOMC) minutes could shift the calculus again. A dovish surprise would test whether stocks keep climbing on earnings alone. It would also show whether Bitcoin can finally act like the hedge its backers describe.

Source: BeInCrypto