Bitcoin, XRP Falls as Bond Yields Spike—So Why Are Whales Still Buying

Bitcoin (CRYPTO: BTC) falls as bond yields hit multi-decade highs on Thursday, even as whale wallets continue accumulating during the pullback.

What’s Driving the Selloff

CoinDesk reported Thursday that the MOVE index, which tracks expected volatility in the Treasury market, jumped 21% to above 95, its highest level since April. Treasury yields told the same story:

• 10-year yield: 5.116%, highest since 2007
• 30-year yield: 5.419%, highest since 2004

That bond market stress spilled straight into crypto. Two hours before the U.S. market open, Bitcoin trades at $83,500, down 2.5% over 24 hours, with Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) down closer to 3% and XRP (CRYPTO: XRP) lower by 7.5%.

Meanwhile, Initial jobless claims stayed under 200,000 for the week, coming in at 197,000, showing the labor market remains resilient even as bond markets churn. 

DoubleLine Capital founder Jeff Gundlach summed up the Fed’s bind bluntly: “If the Fed hikes it will worsen the interest expense problem, since so much borrowing is at the short end. If the Fed cuts, it will worsen the inflation problem.”

Why Whales Aren’t Backing Off

Santiment posted on X that Bitcoin wallets holding 100 to 1,000 BTC have added 113,950 BTC since July 15, growing their collective holdings by 2.22% to roughly 5.24 million BTC.