Dogecoin fell by 8%, while Bitcoin traded below $84,000 as U.S. Treasury yields reached their highest level since 2007. Bitcoin dropped more than 2% to around $83,900 as rising Treasury yields increased pressure on non-yielding assets and leveraged positions. Dogecoin led the decline among cryptocurrencies, losing 7% and dropping just above 9 cents. Zcash, XRP, and Hyperliquid lost between 5% and 6%, while Ether, SOL, and BNB fell by 2-3%. TRX remained unchanged.
The rise in yields was preceded by a turnaround in oil: Brent rose by more than 4% to nearly $104 per barrel, breaking a six-session decline that had previously eased inflation concerns. Then, a preliminary S&P Global survey of business activity in the U.S. showed the fastest growth in output in over five years: the composite index stood at 58.4 – the highest since July 2021. Later that same day, the Treasury auctioned $70 billion in five-year bonds, and demand proved weak. The yield at the auction was 5.033% – the highest since 2006 and about 3 basis points higher than the bonds traded just before the sale, indicating that buyers demanded additional yield.
The yield on 10-year U.S. bonds closed at 5.11% on Wednesday, adding 15 basis points for the day. The rise in government debt yields raises the bar for non-yielding assets, including Bitcoin, and makes borrowing for leveraged positions more expensive. The sharpest drop in Bitcoin on Wednesday occurred shortly after the release of the business activity survey. Bitcoin, which touched nearly $87,300, is now below $85,000 – a level at which Ledn co-founder Mauricio Di Bartolomeo noted a large block of call options expiring at around $14 billion on Deribit on Friday.
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