Bond Yields Hit 1998 Levels as Bitcoin Slides Below $80K — Crisis Fears Mount!

US Treasury yields have spiked to their highest levels in roughly a year, touching territory not seen since 1998 and triggering a fresh wave of global financial crisis anxiety. Bitcoin has fallen below $80,000 as the yield surge drains liquidity from risk assets across the board.

The macro setup is now a three-front pressure test for crypto: Treasury yields compressing risk appetite, oil prices adding inflationary drag, and the Fed holding back from the liquidity injections markets have come to expect. Bitcoin's next directional move is unlikely to be decided on-chain — it runs through the bond market and whatever signal the Fed chooses to send next.

For investors, the 1998 comparison carries weight. That year's yield spike preceded the LTCM collapse and a sharp Fed pivot. Whether history rhymes depends on whether the Fed blinks — and so far it hasn't.