Nicolas Bickel, chief investment officer at Edmond de Rothschild Private Bank, told Bloomberg Television that higher bond yields sustained for an extended period could become a real risk for equities. He specifically flagged highly indebted companies and hyperscalers – the cloud and data-center giants like Amazon, Microsoft, and Google – as the most vulnerable. The warning lands as crypto markets are already deep in extreme fear territory, with the Fear & Greed Index at 25 and Bitcoin trading near $77,000.
What Bickel said
Bickel didn't mince words. He argued that if the 'higher for longer' bond-yield scenario persists, the pressure on equities will mount. Hyperscalers, which carry massive debt loads to fund data-center expansions, are especially exposed because rising yields increase their borrowing costs and could force them to cut capital expenditure or raise prices. That directly threatens the profitability of crypto mining operations and decentralized physical infrastructure networks (DePIN) that rely on hyperscaler compute power.
📊 Market Data Snapshot
The crypto connection
The statement reinforces a macro headwind that's already weighing on risk assets. Bitcoin's 24-hour volume is low, suggesting the market is waiting for a catalyst – Bickel's warning provides a bearish tilt. Prolonged higher bond yields typically tighten financial conditions, reduce liquidity, and strengthen the dollar, all historically bearish for Bitcoin and altcoins. With the 10-year Treasury yield hovering near key levels, a break above 4.5% could accelerate selling. Crypto's correlation with the tech-heavy Nasdaq (currently around 0.65 on a 30-day rolling basis) means any selloff in hyperscaler stocks could quickly spill over into digital assets.
What's at stake for miners
Highly leveraged crypto miners face a double hit. Higher bond yields raise their own borrowing costs, increasing the risk of forced Bitcoin sales or even bankruptcy. A miner liquidation cascade could amplify bearish pressure beyond the general risk-off sentiment – a channel most media coverage overlooks. Meanwhile, stablecoin reserves held in Treasury instruments become more attractive as yields rise, potentially draining capital from riskier crypto positions. This 'yield competition' creates a self-reinforcing cycle: as risk-off sentiment grows, capital flows into stablecoins for the higher yield, further reducing demand for BTC and ETH.
Next moves to watch
The immediate focus for traders is whether the 10-year Treasury yield breaks above 4.5%. If it does, Bitcoin could test $75,000 support, with an open door to $72,000. A break below that would likely trigger cascading liquidations. The bull case hinges on weaker economic data that would send yields lower, potentially sparking a sharp relief rally from oversold levels. For now, Bickel's warning adds to a growing chorus of institutional voices urging caution on risk assets – and crypto is squarely in the crosshairs.
