Bitcoin Price Slips While US Treasury Yields Soar, Oil Prices Climb
Bitcoin Magazine Bitcoin Price Slips While US Treasury Yields Soar, Oil Prices Climb Treasury yields soared on Wednesday to their highest level since 2007 while bitcoin’s price slumped. This post Bi...
Treasury yields soared on Wednesday to their highest level since 2007 while bitcoin’s price slumped.
Bitcoin’s price slid on Wednesday, just as U.S. Treasuries surged, with the 10-year yield climbing above 5% and reaching — its highest level since 2007.
The price of the leading cryptocurrency was down 2% over a 24-hour period Wednesday afternoon in New York, and was trading hands for $84,357.
Bitcoin’s price had surged earlier in the week as investors piled into exchange-traded funds. At one point, it soared as high as nearly $87,330.
JUST IN: 🇺🇸 U.S. Treasury Department to buy back up to $6 billion in longer-term debt tomorrow. 👀Buy Bitcoin 🚀 pic.twitter.com/nZm3BNqiVH
But its rally has since cooled. It dropped further on Wednesday afternoon around the time the U.S. Treasury said it will purchase up to $6 billion of longer-dated government debt on Thursday.
Bitcoin previously benefited from the Treasury Department’s announcement of buybacks — having its best run in months — but this time dropped.
The 10-year Treasury yield climbed above 5% on Wednesday for the first time in 19 years, after September’s flash PMI data came in well ahead of forecasts and pushed the composite index to a five-year high.
Inflation details added to the pressure: input costs across manufacturing and services rose to their highest level since October 2022, driven largely by fuel and transportation, while wage pressure also strengthened.
Rising yields are typically a headwind for bitcoin’s price. When safe government bonds pay 5%, holding an asset that generates no income becomes more expensive.
Higher rates also tend to strengthen the dollar and dampen appetite for risk-on assets. Bitcoin has repeatedly retreated this year when yields rose on inflation fears, often with ETF outflows and forced selling by leveraged traders amplifying the move.
Asanat Analysis — Why it matters
The simultaneous rise in Treasury yields and decline in Bitcoin reflects a rotation out of risk assets into government debt—a structural headwind for crypto. When real yields rise sharply, the opportunity cost of holding non-yielding assets like Bitcoin increases, creating competitive pressure. Yields at 2007 highs signal either inflation expectations or aggressive rate-hold positioning, both of which typically precede risk-off environments where capital flows toward safety.
The concurrent oil rally complicates the narrative: it suggests stagflation concerns rather than pure flight-to-safety. If energy prices and bond yields are rising together, markets may be pricing in persistent inflation despite tighter monetary conditions. This backdrop historically pressures speculative assets while benefiting commodities. For crypto, the timing is significant—it signals that macro headwinds are structural rather than cyclical, potentially extending the correlation with equity volatility.
Bitcoin's price sensitivity to Treasury yields has strengthened post-2020, with yields now functioning as a direct opportunity-cost signal. A sustained regime of elevated real yields (5%+) would challenge the bull-case thesis that crypto is a macro hedge. Protocols and tokens lack yield generation, making them particularly vulnerable in high-rate environments compared to equity or fixed-income alternatives.