CoinDesk
Bitcoin fell more than 2% to about $83,900 after trading near $87,300, while Dogecoin dropped 7% to just above 9 cents. The 10-year U.S. Treasury yield closed Wednesday at 5.11%, up 15 basis points in a day and at its highest level since 2007.
Why it matters
Several developments pushed borrowing costs higher. Brent crude rose more than 4% to nearly $104 a barrel, ending a six-session slide, while S&P Global's flash survey showed U.S. business output growing at its fastest pace in more than five years. The composite index reached 58.4, its highest reading since July 2021.
A $70 billion Treasury sale added pressure. The five-year notes cleared at a 5.033% yield, the highest auction yield since 2006, and about 3 basis points above their pre-sale trading level, indicating buyers demanded extra yield.
Market impact
Higher government yields make nonyielding assets such as Bitcoin less attractive by comparison and raise borrowing costs for leveraged positions. Bitcoin's steepest decline on Wednesday came shortly after the business survey was released. Dogecoin led the losses; Zcash, XRP and Hyperliquid fell 5% to 6%, while Ether, Solana and BNB lost 2% to 3%. TRX was flat.
Bitcoin was below $85,000 ahead of Friday's roughly $14 billion options expiry on Deribit. Ledn co-founder Mauricio Di Bartolomeo had flagged a large block of call options at that strike, putting the level in focus as markets weigh higher yields and the expiry.
Frequently asked questions
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What pushed Treasury yields higher as Bitcoin and Dogecoin fell?
A rebound in Brent crude, strong U.S. business activity and weak demand at a $70 billion five-year Treasury sale contributed to higher yields.
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How high did the 10-year Treasury yield rise?
The 10-year yield closed Wednesday at 5.11%, up 15 basis points in a day and at its highest level since 2007.
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How did the five-year Treasury auction affect borrowing costs?
The $70 billion sale cleared at a 5.033% yield, about 3 basis points above the notes' pre-sale trading level, indicating buyers demanded extra yield.
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Which cryptocurrencies fell the most in the sell-off?
Dogecoin fell 7% to just above 9 cents. Zcash, XRP and Hyperliquid each lost 5% to 6%, while Ether, Solana and BNB declined 2% to 3%.
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Why was the $85,000 Bitcoin level in focus?
Bitcoin was below $85,000 ahead of Friday's roughly $14 billion Deribit options expiry. Ledn co-founder Mauricio Di Bartolomeo had flagged a large block of call options at that strike.
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