Bitcoin's Price Drops While US Treasury Yields Surge and Oil Prices Advance
Bitcoin, the leading cryptocurrency, fell 2% over the 24-hour period ending Wednesday afternoon in New York to $84,357, as U.S. Treasury yields surged and the 10-year yield climbed above 5% for the first time in 19 years, reaching its highest level since 2007. The figures were reported by Bitcoin Magazine writer Mathew Di Salvo.
Earlier ETF rally cooled
Bitcoin had surged earlier in the week as investors piled into exchange-traded funds, reaching nearly $87,330 at one point. The rally cooled on Wednesday afternoon, around the time the U.S. Treasury Department said it would buy back up to $6 billion in longer-term debt on Thursday. Bitcoin Magazine posted that announcement on September 23, 2026. The same type of Treasury buyback news had previously helped Bitcoin enjoy its best run in months, but this time the price dropped.
Yield and inflation data drove the move
The 10-year Treasury yield moved above 5% after September flash PMI data came in well ahead of forecasts, pushing the composite index to a five-year high. Inflation details added 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. Climbing oil prices fed that fuel-cost pressure.
Why higher yields weighed on Bitcoin
Rising yields are typically a headwind for Bitcoin because safe government bonds paying 5% make income-free assets more expensive to hold. 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.
What to watch next
The immediate question is whether the Treasury’s $6 billion buyback of longer-dated debt on Thursday changes the path of yields, or whether September’s PMI and inflation signals keep pressure on risk assets. The session showed that a Treasury event that once lifted Bitcoin did not automatically repeat that effect when the macro backdrop turned toward higher yields.
Risk Warning
This article is provided for informational purposes only and does not constitute investment advice. It summarizes publicly reported market developments and may not reflect the views of any advisor. Bitcoin and other crypto assets are highly volatile and can experience rapid price swings due to macroeconomic news, yields, ETF flows, and regulatory changes. Past performance does not guarantee future results. Readers should conduct independent research, assess their own risk tolerance, and make rational decisions before acting on any information herein.
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