Bitcoin falls below $84,000 as 10-year Treasury yield hits highest since 2007

Bitcoin dropped below $84,000 in Asian trading Thursday, extending a slide that began when government borrowing costs climbed to levels not seen in nearly two decades, according to CoinDesk data.

The largest cryptocurrency changed hands near $83,900, more than 2% lower over 24 hours and well off an intraday high near $87,300. Smaller tokens fared worse: dogecoin (DOGE) fell 7% to just above 9 cents, while ZEC, XRP and HYPE each shed between 5% and 6%. Ether, SOL and BNB lost 2% to 3%. Only TRX held steady.

The pressure came from the traditional bond market. The 10-year U.S. Treasury yield finished Wednesday's session at 5.11%, a jump of 15 basis points in a single day, per Treasury figures — the highest close since 2007.

Three separate forces pushed yields up. Brent crude reversed course and jumped more than 4% toward $104 a barrel, halting a six-day decline in energy prices that had recently helped temper inflation expectations. Then S&P Global's flash survey showed U.S. business output expanding at the quickest rate in more than five years, with the composite index reaching 58.4 — the strongest reading since July 2021. Finally, the Treasury's auction of $70 billion in five-year notes met tepid demand, clearing at 5.033%. That is the highest such auction yield since 2006 and roughly 3 basis points above pre-sale trading levels, indicating investors wanted extra compensation before committing.

Rising yields weigh directly on crypto. Assets that produce no income become harder to justify when safe bonds pay over 5%, and leveraged traders face steeper financing costs on borrowed capital. Bitcoin's sharpest fall on Wednesday arrived soon after the business survey data crossed the wires.

Options overhang

One technical level adds near-term significance to the $85,000 mark. Mauricio Di Bartolomeo, co-founder of lender Ledn, had previously identified a large concentration of call options at that strike, and bitcoin now trades beneath it heading into Friday's derivatives expiry on Deribit — an event involving roughly $14 billion in open contracts.