Cryptocurrencies don’t appear to be that lucrative an investment in an era of high inflation, Bloomberg reported, as the U.S. Treasury now pays higher rates on its bonds.

The Federal Reserve Board’s seeming intention to raise interest rates, coupled with shaken confidence in crypto caused by the collapse of a new stablecoin, Terra, and failures of lenders such as Celsius Network, have caused yields to drop.

Crypto has no relation to central bank rates, so its value can fall as borrowing costs increase in reaction to interest rate increases. Due to its speculative nature as an asset, that could result in lower yields that lead to lower demand, which lowers prices.

As higher rates become available, investors can now earn as much as 4.4 percent on global company debt, according to a Bloomberg index. 

“Higher appetite for Treasuries has sucked out liquidity from crypto,” Maple Finance CEO Sidney Powell told Bloomberg. 

“Two years ago, interest rates in crypto were at least 10 percent and in the real world rates were either negative or near-zero,” ANB Investments CEO Jaime Baeza told Bloomberg. “Now it’s almost the reverse, because yields in crypto have collapsed and central banks are raising rates.”

Previously, lower interest rates prompted money managers to seek riskier assets such as crypto. Now, the opposite is true.

"[Y]ou can get over 3 percent on a triple A-rated T-bill that’s guaranteed by the U.S. government,” said Morgan Stanley Chief Cross-Asset Strategist Andrew Sheets. “This will have an impact on the performance of assets with no yield such as gold, some tech stocks and crypto.”