Bitcoin survived 5% yields but crypto’s cheap-money era did not
The 10-year US Treasury yield reached 5.34%, its highest level since 2002, while Bitcoin and Ethereum rose sharply in the third quarter, supported by strong ETF inflows. The piece argues that higher yields remain a headwind for crypto financing even when prices rise: they increase the cost of leverage and corporate borrowing, pressure Bitcoin treasury companies whose shares trade at or below net asset value, and make DeFi yields less attractive relative to safer Treasury products. Bond and energy shocks also triggered large crypto liquidations and reduced exchange open interest. The outlook depends partly on whether yields ease: lower rates could support institutional demand and financing models, while persistently high yields could sustain pressure on leveraged positions, treasury firms and DeFi activity.
