Bitcoin Slides Toward $83K as Treasury Yields Hit 2007 High

Bitcoin fell below $84,000 during Asian trading on Tuesday as surging U.S. Treasury yields and rising oil prices pressured cryptocurrency markets ahead of key U.S. inflation data.

Bitcoin slipped less than 1% to just above $83,100, testing the lower end of last week's trading range. The decline came after the benchmark 10-year Treasury yield reached its highest level since 2007, increasing pressure on risk assets.

Zcash (ZEC) led losses among major cryptocurrencies, tumbling 12% to around $1,380. Solana (SOL) and Hyperliquid (HYPE) dropped between 3% and 4%, while Dogecoin (DOGE) fell 3%, BNB declined 2% and XRP lost nearly 2%. Ether (ETH) and TRX were largely unchanged.

Smaller cryptocurrencies showed mixed performance. The Graph (GRT) surged 18% and Immutable (IMX) gained nearly 10%, while Uniswap (UNI) and Bitcoin Cash (BCH) each dropped about 10%. Dash (DASH) fell 7%. Total cryptocurrency market capitalization stood near $2.86 trillion.

Crypto market sentiment nevertheless remained elevated, with a closely watched index at 74 out of 100 on Monday, just below the "extreme greed" threshold.

FxPro chief market analyst Alex Kuptsikevich said Bitcoin's retreat toward $83,000 represented a test of last week's consolidation floor. He identified the $82,000 region, where previous peaks formed in May and early September, as an area that could be retested.

Kuptsikevich added that a sustained move below $80,000 could indicate Bitcoin is not yet prepared for another major advance. Renewed bullish momentum, however, could potentially carry BTC above $90,000.

Macro conditions remain the main source of pressure. The 10-year Treasury yield stood around 5.25% in Asian trading after Monday's surge, while Brent crude climbed more than 1% toward $107 per barrel as hopes faded for a near-term diplomatic breakthrough with Iran.

Higher energy prices could reinforce inflation concerns and expectations for additional Federal Reserve rate hikes. Markets will now focus on Wednesday's August personal consumption expenditures price index. A stronger-than-expected PCE inflation reading could increase rate-hike expectations, push Treasury yields higher and add further pressure on Bitcoin after its retreat from above $87,000.