Bitcoin moved lower on Thursday, extending sharp overnight losses as rising Treasury yields and a rebound in oil prices weighed on investor appetite for risk.
The broader crypto market also weakened, with traders taking profits after strong gains across digital assets during September.
Bitcoin fell 2.4% to $83,687.70 by 09:16 ET.
Despite the pullback, the world’s largest cryptocurrency remained firmly higher for the month, supported by improving regulatory sentiment in the United States.
Bitcoin Price Falls as Treasury Yields Surge
Bitcoin’s decline came alongside weakness across other risk-sensitive markets as US Treasury yields climbed sharply.
The benchmark 10-year US Treasury yield moved back above 5%, reaching its highest level since 2007.
The rise followed stronger US purchasing managers index data and hawkish comments from a Federal Reserve official, which increased expectations that interest rates could remain higher for longer.
The Federal Reserve raised its benchmark interest rate by 25 basis points last week and reiterated its commitment to bringing annual inflation back toward its 2% target.
Markets interpreted the central bank’s message as a sign that additional rate increases could remain possible.
Global Bond Yields Move Higher
Higher bond yields were not limited to the United States.
Government borrowing costs rose across several developed markets as investors adjusted expectations for future monetary policy.
Japan’s 10-year government bond yield also climbed to its highest level in roughly 30 years.
Higher interest rates can create pressure on speculative assets such as Bitcoin because safer fixed-income investments become more attractive when bond yields rise.
As a result, cryptocurrencies can face selling pressure when investors move capital toward assets offering higher risk-adjusted returns.
Oil Prices Add to Market Concerns
A sharp rebound in oil prices added another layer of uncertainty for financial markets.
Crude prices rose as expectations for progress in US-Iran diplomacy weakened.
Higher oil prices can increase inflation concerns because energy costs feed into transportation, production and consumer prices.
That could make it more difficult for central banks to ease monetary policy, reinforcing expectations that interest rates may remain elevated.
Oil prices also received support following remarks by Iranian President Masoud Pezeshkian at the United Nations General Assembly in New York.
His comments increased market concerns that tensions between Iran and the United States could remain elevated.
Higher Rates Weigh on Risk Assets
The combination of stronger bond yields and rising energy prices has created a more difficult environment for risk-sensitive investments.
Bitcoin and other cryptocurrencies are often affected when markets begin pricing in tighter financial conditions.
If interest rates stay higher for longer, investors may become less willing to hold volatile assets when government bonds and other lower-risk investments offer more attractive yields.
This shift in sentiment contributed to Thursday’s pullback across the crypto market.
Altcoins Follow Bitcoin Lower
Major altcoins also declined as weaker risk appetite triggered profit-taking.
Ether, the second-largest cryptocurrency by market capitalization, fell 2.2% to $2,657.83.
XRP dropped 5.6% to $1.4876, while Solana declined 2.1%.
Cardano lost 4.2%, while BNB slipped nearly 1%.
Memecoins were among the weaker performers, with both Dogecoin and $TRUMP falling more than 6%.
Regulatory Optimism Still Supports Crypto
Despite Thursday’s losses, the crypto market has benefited from stronger regulatory optimism in the United States.
Investor sentiment improved after the Securities and Exchange Commission announced a five-year exemption related to blockchain-based stock offerings.
The move helped support significant gains across several altcoins earlier in the month.
Positive regulatory developments also helped investors look beyond the failure of the Clarity Act to advance through Congress.
Bitcoin Remains Higher for September
Bitcoin’s latest decline reflects renewed pressure from traditional financial markets rather than a complete reversal of September’s bullish momentum.
The cryptocurrency remains significantly higher for the month, supported by regulatory optimism and improving institutional sentiment toward digital assets.
However, rising Treasury yields, higher oil prices and expectations for tighter Federal Reserve policy remain important risks for the market.
Investors will therefore continue to monitor interest-rate expectations, energy prices and broader risk sentiment for clues about Bitcoin’s next major move.
