U.S. Treasury yields continued to rise on Oct. 7, and crypto moved lower with them. According to CNBC, the benchmark 10-year Treasury yield briefly climbed nearly 8 basis points to 5.35%, the highest level since 2002. The 30-year yield rose to 5.724%, also a 24-year high. CoinDesk pricing showed Bitcoin briefly falling below $83,000.
$39 billion 10-year Treasury auction in focus
The U.S. Treasury was set to sell $39 billion in 10-year notes on Oct. 7, with results due at 1 p.m. Eastern Time, or 1 a.m. Taiwan time on Oct. 8. The market was watching whether yields had risen enough to attract buyers or whether investors would demand an even larger premium.
The Treasury had sold $58 billion in 3-year notes the day before. Another $22 billion in 30-year bonds was scheduled for Oct. 8. In addition, the department was set to conduct at least $4 billion in buybacks targeting the 20-year to 30-year sector, double the usual size.
Inflation and energy concerns add pressure
CNBC said investors were worried about inflation and rising energy prices. Since the end of July, the U.S. 10-year Treasury yield has risen 60 basis points. Over the same period, U.S. crude prices have gained 20%.
Selling pressure spread to overseas bond markets as well. France’s 10-year government bond yield jumped 12 basis points to 4.876%, while the U.K. 10-year gilt yield rose 7 basis points to 5.447%.
Fed minutes due later in the day
Minutes from the Federal Reserve’s September meeting were scheduled for release at 2 p.m. Eastern Time, or 2 a.m. Taiwan time on Oct. 8. The source article said the Fed delivered its first rate hike since 2023 at that meeting.
CoinDesk said markets had largely ruled out another rate hike in October. Even so, they still expected three more increases by June 2027, which would take the federal funds rate to 4.50% to 4.75%.
Bitcoin falls from $86,600, Ether drops 6%
Bitcoin retreated from $86,600. Wintermute OTC trader De Maere said Bitcoin fell overnight from $86,600 to around $84,000, showing that cryptocurrencies were reacting more sharply than U.S. equities to geopolitical pressure.
He said higher oil prices, rising Treasury yields and a stronger U.S. dollar were the main headwinds. News that Iran had stepped up attacks on oil tankers pushed Brent crude above $100, he added. De Maere said $82,500 was a key support level: if Bitcoin holds above it, the current uptrend remains intact; if it breaks below, heavier selling pressure could follow.
Ether was weaker still. CoinDesk said ETH fell 6% after Bitmine chairman Tom Lee said he would stop buying once his holdings reached 5% of total Ether supply.
Broker note mentioned a possible move toward $80,000
A ChainNews report published on Oct. 6 cited broker analysis saying Bitcoin could fall toward $80,000 if it breaks below $84,000.