Bitcoin falls below $84K as 10-year Treasury yield hits 19-year high
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bitcoin dropped below $84,000, reaching around $83,200 during Asian trading after the US 10-year Treasury yield hit its highest level since 2007, rising above 5.1%. The rise in Treasury yields is linked to strong US business data and higher oil prices. Analysts, including Bas Kooijman of DHF Capital, cite increased market expectations of a Federal Reserve rate hike in October, with CME's Fedwatch tool showing over a 70% probability. The US Treasury announced a $6 billion bond buyback for long-dated debt to improve liquidity.
Why it matters
The increase in Treasury yields provides investors with higher government debt returns and could raise borrowing costs, putting downward pressure on Bitcoin and other risk assets. A probable Fed rate hike in October would heighten short-term borrowing costs, affecting dollar-funded leveraged Bitcoin trading. Market changes before the Fed decision could influence yields, the dollar, and Bitcoin’s price.
Key context
Bitcoin traditionally has a mixed performance in September ("Red September") but has closed this month higher for three consecutive years, including 2023, 2024, and 2025. October ("Uptober") has historically averaged a nearly 20% price increase, although it declined by 3.69% last year. The US 10-year Treasury yield reached above 5.1% for the first time since 2007, rising on stronger economic and energy data. The Federal Reserve's upcoming meeting on October 28 is critical for policy direction.
Key numbers and entities
Bitcoin (BTC) fell below $84,000 to $83,200. The US 10-year Treasury yield reached 5.13% intraday and closed Wednesday at 5.11%. The Treasury announced a $6 billion bond buyback. The CME Fedwatch tool places a 75.3% chance of a rate hike to 4.00-4.25% in October. Bas Kooijman is CEO at DHF Capital, James Stanley is senior market analyst at FOREX.com. Data references CoinGlass and CME Group.
What remains unclear
The article does not specify how sustained the Treasury yield increase might be or how exactly investors will react in the medium term. It does not provide detailed projections for Bitcoin’s price beyond historical averages or outline potential impacts of the bond buyback on crypto markets. The precise interplay between rising yields, Fed policy, and Bitcoin volatility is noted but not deeply quantified.