NEW YORK, Aug 22 Reuters Surging U.S. Treasury yields are sending shudders through riskier areas of the market, leaving investors to wonder how badly it will dent a rally that has lifted everything from stocks to bitcoin this year.

Strong economic growth has spurred expectations that the Federal Reserve will leave rates higher for longer, pushing Treasury yields this month to their highest levels since 2007. That climb has made them harder to ignore for holders of stocks and other speculative assets, which have rallied for most of the year even as yields moved steadily higher.

The SP 500 has lost 4 this month as the U.S. benchmark 10year Treasury yield climbed to a more than 15year high of 4.366 on Tuesday. Meanwhile, the SP 500 technology sector has dropped 5.7, bitcoin has fallen over 10 and the ARK Innovation ETF  a bastion of many highgrowth names has dropped 18.5. Stocks rose on Monday, with the SP 500 closing up 0.7 and futures pointed to a further rise on Tuesday.

Higher Treasury yields which move inversely to bond prices can take the shine off speculative assets by offering investors attractive payouts on an investment seen as basically risk free because it is backed by the U.S. government. Rising rates also increase the cost of capital throughout the economy, making it more difficult for everyone from individuals to companies to service debt.

The day of reckoning is here for assets such as cryptocurrencies and smaller cap growth companies that burned…