Bitcoin Defies High Yields with Record Inflows

The 10-year Treasury yield recently hit its highest level since 2002, reaching 5.31%. At the same time, Bitcoin funds attracted a record $2.5 billion in inflows, surpassing the 10-year high. This combination is unusual, as investors typically withdraw from non-interest-bearing assets like Bitcoin when government bonds offer high returns.

According to CoinShares, Bitcoin funds alone accounted for $2.52 billion of the $3.55 billion in inflows. However, a single week of inflows does not guarantee sustained demand, and lasting conviction typically shows up over months of consistent buying.

Despite the rising yields, Bitcoin performed well in September, gaining approximately 10% and marking its best September since 2012. However, the longer-term trend is less positive, with Bitcoin declining about 30% over the past year and around 5% year-to-date for 2026.

Goldman Sachs' Tony Pasquariello warns that 10-year yields at 5.17%, a 24-year high, are reintroducing pressure on equities and yield-less assets like Bitcoin. If the 10-year yield rises further above 5.31% and weekly fund flows turn negative, Bitcoin may lose much of its September gains.