Treasury Yields Soar, Cryptocurrency Market Takes a Hit

The cryptocurrency market took a hit on Thursday as Treasury yields reached their highest level since 2007. Bitcoin fell more than 2% to around $83,900, while Dogecoin led a broad sell-off with an 8% decline.

The rise in Treasury yields has increased pressure on non-yielding and leveraged assets like Bitcoin. The 10-year U.S. Treasury yield closed Wednesday at 5.11%, up 15 basis points from the previous day, according to Treasury data.

Brent crude prices turned around, climbing more than 4% to nearly $104 a barrel after six sessions of decline. This was followed by strong U.S. business activity, as S&P Global's flash survey showed output growing at its fastest pace in over five years.

The Treasury's $70 billion sale of five-year notes landed later in the day and drew weak demand, clearing at 5.033%, the highest auction yield since 2006. This has raised the bar for holding assets that pay nothing, like Bitcoin, making it more expensive to borrow against leveraged positions.