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Dogecoin down 8%, bitcoin under $84,000 as Treasury yields hit highest level since 2007
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- DeepHorus
Bitcoin slipped below $84,000 and Dogecoin led a broad cryptocurrency sell-off as U.S. Treasury yields climbed. Bitcoin traded near $83,900 during Thursday morning hours in Asia, down more than 2% over the previous 24 hours after reaching almost $87,300, according to CoinDesk data. Dogecoin, often traded as DOGE, fell 7% to just above nine cents. The combined move in oil, business activity and Treasury borrowing demand unsettled the digital-asset market.
U.S. Treasury data put the 10-year yield at 5.11% at Wednesday’s close, 15 basis points higher in a day. Bitcoin’s steepest decline on Wednesday came shortly after the release of a flash survey showing the strongest U.S. business growth in more than five years. Zcash, XRP and Hyperliquid each dropped 5% to 6%, while ether, SOL and BNB lost 2% to 3%. TRX held flat.
Oil prices also reversed their recent easing of inflation concerns. Brent crude rose more than 4% to nearly $104 a barrel, ending a six-session decline. S&P Global’s flash U.S. business survey recorded its strongest output growth in more than five years, with a composite index reading of 58.4. That was the survey’s highest level since July 2021, adding to upward pressure on Treasury yields.
The Treasury’s $70 billion sale of five-year notes drew weak demand and cleared at a 5.033% yield, the highest auction yield for that maturity since 2006. The result was about 3 basis points above the notes’ level shortly before the sale, indicating that buyers required additional yield to absorb the debt. The auction, higher oil prices and expanding business activity converged as borrowing costs increased. Together, they placed fresh pressure on cryptocurrency prices.
Government bonds compete with assets that generate no direct income, making higher Treasury yields more attractive to investors than holding bitcoin. Higher borrowing costs can also make leveraged cryptocurrency positions more expensive to maintain, adding to market pressure. Bitcoin trading below $85,000 is significant for short-term traders because Ledn co-founder Mauricio Di Bartolomeo identified a large block of call options at that strike. Roughly $14 billion in Deribit options are scheduled to expire Friday, concentrating attention on the major cryptocurrency’s next moves.
Friday’s expiration is the next scheduled market focus, while Treasury yields, oil prices and the prospect of further leveraged selling remain sources of uncertainty. Bitcoin’s broader decline, with DOGE falling 7% and several other tokens losing 5% or more, illustrates the market’s sensitivity to tighter financial conditions. The latest data showed that borrowing costs were rising across several markets rather than because of a single development. The approaching options expiration will provide the next opportunity to gauge how traders reposition around the $85,000 strike.
