Bitcoin declines 10% to $76,000–$77,000 amid rising US Treasury yields (4.814%) and fiscal deficit concerns, signaling macro liquidity pressure rather than crypto-specific weakness.
Macro & Markets ·
Bitcoin declined roughly 10% from above $81,000 in August to the $76,000–77,000 range as the US 10-year Treasury yield reached 4.814%, its highest level since November 2023. The move reflects broader macroeconomic headwinds rather than crypto-sector-specific dynamics. Markets are monitoring whether Treasury Secretary Bessent will take action in the bond market, given the implications of sustained yield pressure on risk assets.
Rising Treasury yields typically compress appetite for higher-risk investments, creating conditions that can suppress Bitcoin demand even as stronger-than-expected US employment data has raised expectations for potential Federal Reserve rate hikes. The mechanism linking bonds and Bitcoin in this environment centers on liquidity: higher yields make fixed-income instruments more attractive relative to volatile assets, pulling capital away from crypto.
What remains unclear is whether the current yield spike reflects a durable shift in Fed policy expectations or a temporary adjustment. No timeline has been given for Bessent's potential bond-market intervention, and the durability of the $76,000–77,000 support level is untested under continued yield pressure.