Cryptocurrency markets moved lower on Thursday as rising U.S. Treasury yields and weaker appetite for risk weighed on Bitcoin and other major digital assets.
Bitcoin traded around $83,000–$83,500, extending its decline after trading above $86,000 earlier in the week. XRP fell more sharply, losing more than 7% over 24 hours, while Dogecoin and several other large cryptocurrencies also recorded notable losses.
The downturn coincided with renewed pressure in global bond markets. The U.S. 10-year Treasury yield climbed to its highest level since 2007 as stronger business activity, higher oil prices and weak demand at a Treasury auction raised fresh concerns over inflation and the future path of interest rates.
Higher bond yields can reduce investor appetite for riskier assets by making government debt comparatively more attractive while also increasing borrowing costs across financial markets. The move added pressure to cryptocurrencies alongside broader caution across equities and other risk-sensitive assets.
Trading conditions also showed signs of deleveraging, with Bitcoin futures open interest declining as investors reduced leveraged positions during the market pullback.
Attention is now turning to Friday's quarterly crypto-options expiry, with billions of dollars in Bitcoin and Ether contracts due to expire. The event could contribute to additional short-term volatility as traders close, settle or roll existing positions.
