Bitcoin survives a 5.2% Treasury shock as traders slash $1.7 billion in leverage

According to CryptoSlate, Bitcoin has held near $84,000 despite a historic US bond selloff pushing the benchmark 10-year Treasury yield to 5.22%, its highest level since 2007. The 30-year yield also reached a 22-year high of 5.5185%. This surge in borrowing costs raises Bitcoin's opportunity cost as government debt offers yields above 5%.

CryptoSlate reports that traders slashed $1.7 billion in derivatives exposure over several days, with selected-exchange open interest falling by 14.3%. Concurrently, Bitcoin declined only about 2.3% from Sept. 22 to 25, moving inside a roughly $83,000 to $85,000 range. Analysts from Bitwise, Jefferies, Bitcoin Opportunity Fund, Allianz, Fidelity Investments, BlockScholes, and CryptoQuant noted that heavy government borrowing, strong economic activity, and recent Federal Reserve policy actions continue to influence broader financial markets.

Market participants await upcoming PCE inflation and jobs data, which will test whether Bitcoin can resist further increases in long-term yields following this major reduction in market leverage.