UNITED STATES / RankWire.AI / – Bitcoin traded near $84,000 on Monday as U.S. Treasury yields remained above 5%, placing government borrowing costs near their highest levels in more than two decades. Federal Reserve data showed the 10-year Treasury constant-maturity yield at 5.22% on Oct. 8. It had reached 5.31% on Oct. 5 after standing at 4.96% on Sept. 22. Bitcoin traded around $83,700 early Monday, about one-third below its October 2025 record.
The rise in Treasury yields has increased the stated returns available on U.S. government debt while Bitcoin itself pays no interest. The benchmark 10-year yield has climbed by more than a percentage point during 2026. Longer maturities have also moved sharply higher, with the 30-year Treasury yield trading above 5.6% last week. Higher government yields have coincided with stronger demand for fixed-income funds, while borrowing costs across mortgages, corporate debt and other credit markets have also increased.
Bitcoin reached an all-time high of about $126,223 on Oct. 6, 2025, before falling substantially over the following months. The cryptocurrency changed hands near $83,766 early Oct. 12, according to market pricing. That level left Bitcoin roughly 34% below its record. Bitcoin has recovered from lower levels recorded earlier in 2026 and has traded mostly above $80,000 during early October. Its recent price action has unfolded alongside large moves in bonds, equities, oil and the U.S. dollar.
Treasury yields climb as inflation stays elevated
The Federal Reserve raised its benchmark federal funds target range by 25 basis points to 3.75% to 4% on Sept. 16. The central bank said economic activity was expanding at a solid pace while inflation remained elevated. Its September projections placed 2026 personal consumption expenditures inflation at 3.7%, with core inflation at 3.4%. The Federal Reserve maintains a 2% longer-run inflation goal. Officials also kept policy decisions tied to incoming economic data and the balance of risks.
Long-term Treasury yields have climbed during a period of higher oil prices, persistent inflation concerns and heavy government borrowing. The 10-year yield touched about 5.36% last week, its highest level since 2002, before retreating. A $39 billion U.S. Treasury auction of 10-year notes on Oct. 7 drew strong demand from investors. The benchmark yield then eased to about 5.23% on Oct. 8. The 30-year yield also remained above 5.6% after reaching a 24-year high.
Bitcoin remains below its 2025 record
Investment-fund flows have shown substantial demand for fixed-income products as Treasury yields moved higher. U.S. bond funds attracted a record $19.78 billion in the week through Oct. 7. Equity funds recorded $5.11 billion in net withdrawals during the same period, while money market funds drew $68.49 billion. Those figures cover traditional investment vehicles and do not establish a direct causal relationship between Treasury yields and Bitcoin prices. They do, however, document strong recent demand for interest-bearing assets.
Bitcoin remained above $83,000 on Monday after trading between roughly $80,000 and $87,000 during the first part of October. Treasury securities offer scheduled interest payments and repayment of principal backed by the U.S. government. Bitcoin has no comparable cash flow and its market price can change sharply over short periods. The cryptocurrency remains well below its 2025 record while benchmark Treasury yields stay above 5%. Those two market conditions remain central to comparisons between Bitcoin and fixed-income assets.