Key Insights:
- Bitcoin price fell 2.8% to $83,443 as Treasury yields and the dollar moved higher.
- Tradeweb recorded a 5.444% 30-year yield, the highest reading since 2004.
- U.S. spot Bitcoin and ETH as its native asset.">Ether ETFs attracted a combined $452 million on September 23.
Bitcoin price faced fresh downward pressure on Thursday as long-term government borrowing costs increased across major financial markets. During midmorning European trading hours, yields on U.S. Treasuries and German Bunds climbed to multiyear peaks.
Simultaneously, the dollar climbed to an eight-week high against a basket of competing currencies. Bitcoin traded at $83,443, registering a 2.8% decline over a 24-hour period. Even so, it maintained an 8.80% gain across a seven-day span. The broader global cryptocurrency market advanced by 8.40% during that exact timeframe.
That placed the recent movement in Bitcoin price squarely within the context of broader fixed-income shifts.
U.S. Treasury Yield Sets Bitcoin Price Backdrop
Figures from Tradeweb positioned the 10-year U.S. DAO controls and spends.">Treasury yield at 5.148%, marking its highest point since 2007. Meanwhile, the 30-year U.S. DAO controls and spends.">Treasury yield climbed to 5.444%, achieving its highest mark since 2004. Together, these developments extended the previous day’s U.S. sell-off, which had pushed yields higher by 10 to 15 basis points.
In parallel, the 10-year German Bund yield increased by more than four basis points to reach 3.579%, hitting its highest level since 2009. The 10-year U.K. gilt yield also grew by 6.1 basis points to land at 5.381%. At the same time, the DXY dollar index touched 101.238, marking its highest reading since late July.
On Wednesday, U.S. purchasing managers’ figures for September came in higher than anticipated. That release amplified market expectations for further Federal Reserve interest rate increases following the prior week’s hike.
Bas Kooijman of DHF Capital S.A. tied those market expectations directly to climbing DAO controls and spends.">Treasury yields and dollar strength. Meanwhile, Federal Reserve Governor Michael Barr stated that additional rate hikes would likely be necessary to steer inflation back to target levels promptly.
Furthermore, Raphael Thuin, who serves as head of capital markets strategies at Tikehau Capital, pointed out that yields of 5% or higher have become a central market focus. Thuin also raised questions regarding whether the economy and financial markets can sustain higher interest rates over an extended duration.
Bond Selling Deepens Bitcoin Price Pressure
The unfolding bond market action placed Bitcoin price into a risk-sensitive environment. The established market framework designates rising real yields and a stronger DXY index as bearish factors for Bitcoin. By extension, that same framework connects stock market pullbacks driven by higher yields to a risk-off climate, which is typically viewed as bearish for cryptocurrency.
Additional details from Wednesday’s sessions pointed toward Treasury supply dynamics and trader positioning. Sluggish demand emerged during the five-year Treasury note auction, fueling further selling pressure. Those notes cleared at a yield of 5.033%, representing the highest auction yield since June 2006, when a comparable auction peaked at a high yield of 5.203%.
In addition, Mohit Kumar, a global economist at Jefferies, reported that stop-outs and position unwinding were responsible for a substantial portion of Wednesday’s sell-off. Kumar also observed a breakdown in historical correlations linking oil, interest rates, and risky assets, characterizing the activity as driven primarily by position-squaring rather than underlying fundamentals.
Looking ahead, ING analysts Padhraic Garvey and Michiel Tukker highlighted the potential for ongoing weakness in long-dated bonds, suggesting another vulnerable leg down could materialize over the coming months. Market participants will closely monitor the Treasury’s $44 billion auction of seven-year notes on Thursday, alongside its $6 billion buyback auction targeting 20- and 30-year bonds.
ETF Flows Offer a Separate BTC Price Data Point
While broader macroeconomic bond conditions dictated the overall backdrop, U.S. spot ETF activity trended in the opposite direction on September 23. Data compiled by SoSoValue revealed $347 million in net inflows directed into U.S. spot Bitcoin ETFs.
BlackRock’s IBIT led the segment by pulling in $166 million. These inflows materialized despite the downward slide in Bitcoin price.
Concurrently, U.S. spot ETH as its native asset.">Ether ETFs accumulated $105 million in net inflows. BlackRock’s ETHA accounted for roughly $50.8 million of that total. Combined, the Bitcoin and ETH as its native asset.">Ether ETF categories drew approximately $452 million in daily inflows.
In addition, the referenced market framework views ETF inflows as a potential counterweight to prevailing macro pressures. It also outlines an alternative market condition for Bitcoin price: rising yields accompanied by a weaker dollar would present a less negative scenario for Bitcoin. However, the data recorded on Thursday instead demonstrated a combination of higher yields and an ascending dollar.
FAQ
- What was the Bitcoin price during the market pressure?
Bitcoin traded at $83,443, dropping 2.8% over a 24-hour period. - How high did Treasury yields rise?
The 30-year U.S. Treasury yield climbed to 5.444%, marking its highest level since 2004. - Did Bitcoin ETFs see inflows despite the price drop?
Yes, U.S. spot Bitcoin ETFs recorded $347 million in net inflows on September 23. - What drove Wednesday’s bond selling?
Analysts noted that stop-outs, position unwinds, and weak demand at the five-year Treasury auction drove the selling.
