Bitcoin Price Slips While US Treasury Yields Soar, Oil Prices Climb

Bitcoin Magazine

Bitcoin Price Slips While US Treasury Yields Soar, Oil Prices Climb

On Wednesday, the price of Bitcoin experienced a decline concurrently with a sharp surge in U.S. Treasuries, as the 10-year yield broke past 5% to hit its highest point since 2007.

By Wednesday afternoon in New York, the premier cryptocurrency recorded a 2% loss over the preceding 24 hours, changing hands at $84,357.

Earlier in the week, Bitcoin experienced a strong upward surge as investors heavily bought into exchange-traded funds, pushing the price to a peak of nearly $87,330.

However, that momentum has since faded. Additional losses occurred on Wednesday afternoon, coinciding with the U.S. Treasury’s announcement that it intends to buy back up to $6 billion in longer-term government debt on Thursday.

Although past Treasury buyback announcements have fueled some of Bitcoin’s strongest monthly performances, this latest news resulted in a price drop instead.

Wednesday marked the first time in 19 years that the 10-year Treasury yield surpassed 5%. This followed September flash PMI figures that easily beat predictions and propelled the composite index to a five-year peak.

Additional inflationary pressures compounded the situation, as manufacturing and services input costs hit their highest point since October 2022—primarily driven by transportation and fuel expenses—alongside mounting wage pressures.

Generally, rising yields act as a negative catalyst for Bitcoin. When safe government debt yields 5%, holding non-yielding assets becomes a costlier proposition.

Furthermore, elevated interest rates usually bolster the U.S. dollar and diminish interest in risk-sensitive assets. Throughout the year, Bitcoin has frequently retreated during yield spikes driven by inflation worries, with ETF outflows and leveraged liquidations often worsening the downturn.

Frequently Asked Questions

What was the price of Bitcoin on Wednesday afternoon?

Bitcoin was trading at $84,357, marking a 2% decline over a 24-hour period.

How high did the 10-year U.S. Treasury yield climb?

The 10-year Treasury yield rose above 5%, reaching its highest level since 2007.

Why did the 10-year Treasury yield spike?

The yield surged after September’s flash PMI data exceeded expectations and lifted the composite index to a five-year high, alongside rising input costs and inflation pressures.

What action did the U.S. Treasury announce?

The U.S. Treasury announced plans to purchase up to $6 billion in longer-dated government debt on Thursday.