TLDR
- Bitcoin dropped over 2%, trading near $83,900 to $84,150 as Treasury yields surged.
- Dogecoin led losses among major tokens, falling around 8%.
- The 10-year Treasury yield closed at 5.11%, its highest level since 2007.
- A weak $70 billion five-year note auction added to selling pressure.
- Oil prices rebounded over 4%, adding to inflation and rate concerns.
Bitcoin fell sharply on Thursday. The price dropped more than 2%, trading near $83,900 after touching almost $87,300 earlier in the week.
The decline came as U.S. Treasury yields climbed to their highest point since 2007. The 10-year yield closed at 5.11%, up 15 basis points in a single day.
Dogecoin took the biggest hit among major tokens. It fell about 8%, dropping to just above 9 cents.
What Pushed Yields Higher
Several factors combined to push borrowing costs up this week. Oil prices played a large role in the shift.
Brent crude jumped more than 4%, nearing $104 a barrel. This ended a six session slide that had been easing inflation worries among investors.
A business survey added more pressure. S&P Global’s flash reading showed U.S. output growing at its fastest pace in over five years.
The composite index hit 58.4, its highest level since July 2021. Bitcoin’s sharpest drop happened shortly after this data was released.
Later in the day, the Treasury sold $70 billion in five-year notes. Demand was weak, and the sale cleared at 5.033%, the highest auction yield since 2006.
The US 10Y Note Yield is now moving in a literal straight-line higher, up to 5.13%.
This is no longer an issue that we have months or years to address.
This is unsustainable. pic.twitter.com/mXAa6SqAeA
— The Kobeissi Letter (@KobeissiLetter) September 23, 2026
Buyers needed extra yield to take on the debt. This signaled reduced appetite for holding government bonds at current rates.
How Other Tokens Reacted
Higher yields make holding assets that pay no interest less attractive. Bitcoin fits into that category, along with many other cryptocurrencies.
ZEC, XRP and HYPE each lost between 5% and 6%. Ether, Solana and BNB fell between 2% and 3%.
XRP dropped further later in the day, falling 7.5% to $1.5052. Cardano slid 7.1%, while the memecoin $TRUMP dropped 11.4%.
Bitcoin now sits below $85,000. Ledn co-founder Mauricio Di Bartolomeo flagged a large block of call options at that price level ahead of Friday’s roughly $14 billion options expiry on Deribit.
Rising Treasury yields were not limited to the United States. Japanese 10-year yields also hit a 30-year high on Thursday.
Rate hike expectations grew after the Federal Reserve raised rates by 25 basis points last week. The Fed reiterated its 2% inflation target, which markets read as a sign more hikes could follow.
Oil’s rebound was tied to comments from Iranian President Masoud Pezeshkian. He addressed the United Nations General Assembly in New York on Wednesday and criticized the United States and President Donald Trump.
Despite the drop, bitcoin remains up for the month of September. Investors had welcomed increased regulatory favor from the U.S. government earlier in the month.
The SEC’s move to grant a five year exemption for blockchain based stock offerings had sparked gains across altcoins. This came even after the Clarity Act failed to clear Congress.
