Bitcoin Drops to $83,000 as 10-Year Treasury Yield Hits 19-Year High

Bitcoin fell sharply on September 24, sliding from around $87,200 to as low as $83,000 as the US 10-year Treasury yield surged to its highest level since 2007, marking the biggest single-day move in the benchmark yield in nearly 18 months. The yield jumped 18 basis points on Wednesday, driven by stronger-than-expected US economic activity surveys, hawkish commentary from a Federal Reserve official, and a Treasury auction that added to supply pressure.

The spike in yields lifted the odds of a Federal Reserve rate hike in October to approximately 75%, deepening the risk-off tone across markets. Treasury market volatility jumped 21 percent alongside the move, amplifying pressure on crypto and equities. Ether, Solana, and XRP each fell around 3 percent on the day, while the Nasdaq dropped 1.15 percent, with declines of more than 2 percent in shares of Google, Broadcom, and Amazon. The US Treasury also announced a buyback of up to $6 billion in long-dated bonds, adding further complexity to the yield picture.

Despite the sharp short-term reaction, analysts noted that Bitcoin's longer-term correlation with rising bond yields is near zero, diverging sharply from gold's behavior and suggesting the sell-off reflects immediate risk-off sentiment rather than a structural shift in Bitcoin's relationship to interest rates. Historical data from CoinGlass shows Bitcoin has closed September higher for three consecutive years and has averaged a 19.92 percent gain in October, which some market observers cited as a potential buffer against sustained losses.