UNITED STATES / RankWire.AI / – Bitcoin traded near $84,000 on Monday while benchmark U.S. Treasury yields remained above 5%. The 10-year Treasury yield stood at 5.22% on Oct. 8, according to Federal Reserve data. It had reached 5.31% three days earlier after ending Sept. 22 at 4.96%. Bitcoin was near $83,700 during early trading on Oct. 12. The cryptocurrency remained about one-third below its record reached in October 2025.
The higher Treasury yields have raised returns available from U.S. government debt. Bitcoin does not provide interest payments or a fixed income stream. The 10-year Treasury yield has gained more than one percentage point during 2026. Longer-term government bonds have also moved higher. The 30-year Treasury yield climbed above 5.6% last week as borrowing costs increased across major credit markets.
Bitcoin reached a record of about $126,223 on Oct. 6, 2025. Its price later fell sharply and remained well below that peak entering Monday. Bitcoin has still held above $80,000 through much of early October. Its recent trading has occurred during major moves across bonds, stocks, oil and foreign exchange markets. Investors have also directed significant new money toward fixed-income funds during the latest increase in yields.
Higher bond yields reshape financial markets
The Federal Reserve raised its target range for the federal funds rate by 25 basis points in September. That move placed the range at 3.75% to 4%. The central bank said economic activity continued to expand at a solid pace. Inflation also remained elevated. September projections placed 2026 personal consumption expenditures inflation at 3.7%. Core inflation was projected at 3.4%, compared with the Federal Reserve’s longer-term inflation goal of 2%.
Long-term Treasury yields have risen alongside higher oil prices and persistent inflation concerns. Increased government borrowing has also accompanied the move in bond markets. The 10-year yield briefly reached about 5.36% last week, its highest level since 2002. It later eased after a $39 billion U.S. Treasury auction of 10-year notes attracted strong demand. The yield stood near 5.23% on Oct. 8, while the 30-year yield remained above 5.6%.
Bitcoin trades well below record levels
Fund flows have shown strong demand for interest-bearing assets during the recent increase in Treasury yields. U.S. bond funds attracted $19.78 billion in the week through Oct. 7. Equity funds recorded $5.11 billion in net withdrawals during the same period. Money market funds received another $68.49 billion. Those flows cover traditional investment products and do not prove that bond yields caused Bitcoin’s decline. They show that investors committed substantial capital to assets that generate interest.
Bitcoin traded between roughly $80,000 and $87,000 during the first part of October. Treasury securities provide scheduled interest payments and repayment of principal backed by the U.S. government. Bitcoin offers no comparable cash payment and can experience large price swings. The cryptocurrency remained about 34% below its 2025 record on Monday. At the same time, benchmark Treasury yields stayed above 5%, keeping government bonds central to comparisons with Bitcoin and other risk assets.