Bitcoin Drops Below $80K as Treasury Yields Hit Multi-Month Highs, ETF Outflows Surge

Bitcoin’s retreat below $80,000 highlights the renewed dominance of the bond market over crypto trading, even as lawmakers advanced a key regulatory bill. As of press time, the cryptocurrency was trading at $79,083, down over 3% after failing to sustain levels above $82,000.

Blockchain analytics firm Santiment linked the reversal to a “buy the rumor, sell the news” reaction following the Senate Banking Committee’s approval of the CLARITY Act. While the legislation marks a significant step toward clearer market-structure rules for digital assets, the initial optimism faded as traders refocused on Treasury yields.

The 10-year Treasury yield climbed above 4.5% for the first time since June 2025, while the 30-year yield approached 5.1%. Jim Bianco of Bianco Research noted that the 30-year yield was just 8 basis points away from a fresh 19-year high.

Higher Yields Reduce Bitcoin’s Appeal

Nicolai Sondergaard, a research analyst at Nansen, explained that rising yields compress the risk premium for assets like Bitcoin, which are sensitive to real interest rates. He stated:

“The 10-year Treasury yield pressing toward multi-month highs is compressing the risk premium available to assets like BTC, which remain structurally sensitive to the real rate environment. At current levels, the cost of holding zero-yield assets rises meaningfully when alternatives offer 4.5% risk-free.”

This shift means crypto-specific progress alone no longer drives price action. While Washington has improved the industry’s policy outlook, the bond market is dictating near-term allocation decisions.

ETF Outflows Reflect Institutional Shift

Pressure from rising Treasury yields is now visible in one of Bitcoin’s critical demand channels: US spot Bitcoin ETFs. SoSoValue data indicate the funds are on track for over $700 million in weekly outflows—the largest weekly decline since late January. This pullback removes a key source of spot demand as Bitcoin attempts to reclaim the $82,000 resistance and its 200-day moving average.

Lacie Zhang, a research analyst at Bitget Wallet, attributed the trend to institutional selectivity, stating:

“Rising US Treasury yields are acting as a clear macro headwind for Bitcoin. As yields move higher, the relative appeal of government debt improves, raising the opportunity cost of holding a volatile, non-yielding asset like BTC.”