5% Treasury Yields Won’t Crush Record-High Stocks. Can Bitcoin Say the Same?
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.
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