Bitcoin and major cryptocurrencies extended losses on Thursday as rising U.S. Treasury yields, a stronger dollar and weaker risk appetite put renewed pressure on digital assets.
Bitcoin traded around $83,300–$83,500, after falling roughly 3% over 24 hours and retreating from levels above $86,000 earlier in the week. XRP suffered heavier selling, dropping more than 7% over the same period, while Dogecoin and several other major altcoins also recorded significant declines.
The crypto selloff coincided with a sharp rise in U.S. government bond yields. The 10-year Treasury yield reached its highest level since 2007 as stronger U.S. business activity, higher oil prices and weak demand at a five-year Treasury auction renewed concerns over inflation and the outlook for interest rates. Higher yields can reduce demand for riskier and non-yielding assets while increasing financing costs for leveraged traders.
Pressure was also visible in crypto derivatives markets. Bitcoin futures open interest fell faster than the underlying asset price, indicating that traders were closing leveraged positions during the decline rather than simply adding large new short positions. Selling pressure was particularly pronounced across several altcoins, including XRP.
Market participants are now watching a major quarterly options expiry scheduled for Friday. More than $17 billion in Bitcoin and Ether options are due to expire on Deribit, according to CoinDesk, which could contribute to additional short-term volatility as traders settle or roll positions.
Despite the decline, implied volatility remained relatively contained, suggesting that options markets were not yet pricing in a broader panic. Bitcoin's ability to hold the area around $82,600 is also being closely watched after the cryptocurrency returned toward a technical level highlighted following its recent breakout.
