Bitcoin slips below $84,000, US 10-year yield at 2007 high
A weak US five-year note auction sent the 10-year yield to its highest since 2007, pulling Bitcoin off an eight-month peak and XRP down about 8%.
The bond market has cut short crypto's climb. Bitcoin reached roughly $87,300 during Wednesday's US session, its best level in eight months, before sliding to about $83,900 as Treasury yields surged. The slide took Bitcoin back below $84,000, and several large altcoins fell harder. By Thursday afternoon IST, Best Crypto India market data had BTC near $83,150 and showed a fall of about 3.2% over 24 hours. The value of the whole crypto market dropped roughly 6.5% to around $2.82 trillion.
Three pressures from Wall Street
A jump in yields. In a single day the US 10-year Treasury yield rose by about 15 to 18 basis points, reaching roughly 5.11% to 5.13%. No reading has been higher since 2007. The trigger was a sale of five-year notes that cleared at 5.033%, the highest such result since 2006, after attracting weak demand.
Strong data and pricier oil. S&P Global's composite survey of US business activity printed 58.4, signalling the quickest growth in more than five years. Brent crude, meanwhile, bounced by more than 4% towards $104 a barrel. Markets treated both as signs that inflation could stay sticky.
Rising odds of a Fed hike. Traders now price a roughly 73% chance that the Federal Reserve raises rates again in October, up from around 50% only a day before.
Losses spread across the board
No major coin escaped. XRP lost about 8%, and Dogecoin gave up 7% to 8%, falling to about 9 cents. Solana shed more than 3%, while Ether eased 2% to 3%. Zcash and Hyperliquid's HYPE were each lower by 5% to 6% at that stage. Later in the day, our data listed NEAR down 8.3%, ZEC down 8.2% and HYPE down 4.6% among trending coins. Listed crypto names such as Strategy and Circle also declined as the Nasdaq fell by more than 1%.
Reading the mood
When government bonds offer a higher risk-free return, assets that pay no income, like Bitcoin, have to work harder to attract money. A more hawkish Fed also tends to pull liquidity out of speculative corners of the market. Even so, sentiment has only cooled a little. Bitcoin's market dominance stayed close to 59.2%, and our Crypto Fear & Greed index still showed 71 (Greed), following last week's rally to $86,000.
What Indian investors should take from it
A drop of a few per cent after a 10% gain in a week is ordinary behaviour for crypto and does not, on its own, say the trend is over. Indian tax rules add a reason to stay calm: crypto losses cannot be set off against other gains, so selling at a loss in a panic and buying back later can cost more than it seems. Watch US yields and Friday's big options expiry, and keep each position small enough to hold through the swings. This is not investment advice.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
