Key Predictions and Market Implications
Société Générale strategists have forecasted a decrease in U.S. Treasury yields by 2026, attributing this projection to anticipated Federal Reserve rate cuts slated for December 2025. This potential shift in monetary policy is expected to influence bond markets and could have indirect effects on other financial assets, including cryptocurrencies, by altering investor risk appetite.
The strategists predict that the two-year U.S. Treasury yield will fall to 3.20%, while the ten-year yield is expected to decline to 3.75% by the close of 2026. These adjustments in benchmark yields are likely to have a ripple effect across various financial sectors.
We predict U.S. Treasury yields to decline by the end of 2026, with the 2-year Treasury yield falling to 3.20% and the 10-year yield to 3.75%.
Historically, changes in Treasury yields have influenced investor behavior in riskier asset markets. While the report does not detail specific consequences for crypto markets, shifts in yield-seeking behavior could lead to indirect impacts.
Market Data and Potential Economic Shifts
The projection of declining Treasury yields, coupled with expected Federal Reserve rate cuts, could signal broader macroeconomic shifts. Such periods have historically seen bond market trends indirectly impacting the valuations of crypto assets.
As of December 1, 2025, Bitcoin's price was approximately $86,625, showing a 5.38% decrease over the preceding day and a 0.06% increase over the past week. Bitcoin holds a significant market capitalization nearing $1.73 trillion, representing 58.68% of the total market, with a 24-hour trading volume of around $62.46 billion.
Research suggests that anticipated shifts in Treasury yields could trigger ripple effects across financial systems. Historically, a more accommodative monetary policy has encouraged investment diversification into high-growth sectors, including technology and digital assets. Further context on the potential impacts of Federal Reserve rate cuts on crypto markets can be found in analyses of this relationship.