US Bonds Post Worst Decade in 223 Years, Impact on Bitcoin

Long US Treasury bonds lost approximately 2% annually over the decade ending August 2026, marking the worst performance since 1803. This decline is attributed to fixed coupon payments being outpaced by rising inflation and Federal Reserve interest rate hikes. Data from Bank of America indicates that negative 10-year returns have occurred in 25 months since records began in 1793, with 24 of those months in the current decade. Jim Bianco of Bianco Research stated that bonds are the worst investment in American history. Meanwhile, Bitcoin is trading near 77934, down about 2% from its 2025 record. The current high yields on bonds are linked to significant federal borrowing, with US debt reaching 40.1 trillion dollars as of September 3. Inflation remains persistent, exacerbated by oil prices exceeding 100 dollars. Despite the bond market's struggles, US spot Bitcoin funds attracted 987.7 million dollars in the week ending September 4, outperforming other crypto funds in inflows. Polymarket traders estimate a 52% chance of a rate hike in September.

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