Bitcoin Price As U.S Treasury Yields Hit Multi- Decade Highs

Bitcoin Price as U.S Treasury Yields Hit Multi- Decade Highs

Bitcoin (BTC) price is down 2% to $77.4k on Wednesday, underperforming a flat broader market, primarily driven by a macro shock from escalating U.S.-Iran tensions and surging oil prices.

Renewed geopolitical tensions and a significant spike in U.S. Treasury yields, which reached multi-decade highs, are fuelling bearish pressure across key cryptocurrency assets.

U.S. military strikes on Iranian targets near the Strait of Hormuz on September 1 sent Brent crude above $90, fuelling inflation fears.  Concurrently, market odds for a September Fed rate hike jumped to 65%, lifting the 10-year Treasury yield to multi-decade highs.

This classic risk-off setup pressured equities and crypto in lockstep. Investors are piling positions in risk free assets as geopolitical tensions stoked inflation concerns, and markets are betting central bankers would hike rates.

Traders acknowledged that Bitcoin traded as a risk asset, with its drop driven by broader macro sentiment, not a coin-specific flaw. The U.S. August non-farm payrolls report on September 4; strong data could reinforce hawkish Fed expectations.

The sell-off triggered significant liquidations, with BTC long liquidations surging 628% over 24 hours to $87.67 million.