Bitcoin Holds Ground as US Bond Yields Reach New Heights

Bitcoin traded near $78,000 at the start of the US session on Monday as US bond yields rose to their highest levels in over two decades. The move was largely driven by comments from US Treasury Secretary Scott Bessent, who signaled that the Treasury may consider further action to support long-term interest rates.

Bessent's remarks caused a brief bounce in Bitcoin prices, with BTC/USD rebounding around 1% on the day after an early dip. However, the price movement was limited as bond yields continued to rise, with the 10-year yield reaching 4.76%, its highest level since January 2025.

The Treasury had previously announced that it would double the size of its debt buyback transactions to $4 billion from September, but this move did not appear to have a lasting impact on bond yields. In fact, yields have continued to climb despite official efforts to stabilize them.

Market participants are now weighing the potential for further Treasury intervention against skepticism that policy changes can reliably steer bond pricing. Some investors, including Ray Dalio, have pointed out that debt markets may be ignoring official actions and instead pricing in sustained strength in long-term interest rates.