Bitcoin Slides to $83,900 as Treasury Yields Hit 2007 High
Rising U.S. borrowing costs and strong business data pushed Bitcoin below $84,000, while Dogecoin fell 7% in a broad crypto sell-off.
Key points
- Bitcoin fell 2% to $83,900 as the 10-year U.S. Treasury yield hit 5.11%, a level unseen since 2007.
- Dogecoin dropped 7% to 9 cents, leading a broad sell-off that saw Zcash and XRP lose 5% to 6%.
- Strong U.S. business data and a weak $70 billion Treasury note sale drove borrowing costs higher.
Bitcoin fell more than 2% to about $83,900 on Thursday morning. This drop followed a sharp rise in U.S. Treasury yields and strong economic data. The 10-year yield closed Wednesday at 5.11%, its highest level since 2007. Rising borrowing costs increased pressure on assets that do not pay interest.
Dogecoin led the broader cryptocurrency sell-off, declining 7% to just above 9 cents. Other major tokens also fell sharply in the same period. Zcash, XRP, and Hyperliquid each lost between 5% and 6% of their value. Ether, Solana, and BNB dropped between 2% and 3%, while Tron remained flat.
Strong Data Pushes Rates Higher
Brent crude oil prices climbed more than 4% to nearly $104 a barrel. This rebound ended a six-session slide that had eased inflation worries. S&P Global reported U.S. business output grew at its fastest pace in five years. The composite index hit 58.4, the highest reading since July 2021.
The Treasury’s $70 billion five-year note sale drew weak demand. It cleared at 5.033%, the highest auction yield since 2006. Buyers demanded extra yield to take on the debt. This weak demand contributed to the broader rise in borrowing costs.
Yields Pressure Non-Yielding Assets
Higher government debt yields raise the bar for holding assets like Bitcoin. These assets do not pay interest to holders. It also becomes more expensive to borrow against leveraged positions. Bitcoin’s steepest drop on Wednesday occurred shortly after the business survey release.
Bitcoin now trades below the $85,000 strike price. Ledn co-founder Mauricio Di Bartolomeo flagged a large block of call options here. This level sits ahead of Friday’s roughly $14 billion options expiration. Traders are watching this threshold closely for potential volatility.
Market Context and Outlook
CoinDesk data confirmed the price movements during Asian morning hours. The market reacted to a combination of oil and survey data. The poorly received note sale added further pressure on yields. Investors remain cautious as they navigate these rising financial costs.
