Crypto market sell-off deepens as bitcoin drops below $84,000 and Dogecoin leads losses

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Crypto sell-off as bitcoin, dogecoin drop

Highlights

Bitcoin falls below $84,000, down over 2% in 24 hours, as bond yields jump and Brent crude rises 4% to nearly $104 a barrel.
DOGE leads losses among major tokens, dropping 7% to just above 9 cents, while ether, SOL, and BNB each decline 2% to 3%.
The $70 billion five-year Treasury auction clears at 5.033%, the highest since 2006, stoking fears of options-driven volatility ahead of Friday’s $14 billion expiration.

Yields rise as macro data weigh on crypto

As reported by CoinDesk, the sell-off in cryptocurrencies intensifies after a rebound in oil, a strong U.S. business survey and a weak five-year Treasury auction push government bond yields higher. The move raises pressure on nonyielding assets and leveraged trades, with bitcoin's sharpest decline on Wednesday coming shortly after the business survey is released.

Bitcoin trades near $83,900 in Thursday Asian morning hours, down more than 2% over 24 hours after touching nearly $87,300, CoinDesk data show. The 10-year U.S. Treasury yield closes Wednesday at 5.11%, up 15 basis points in a day, according to Treasury data.

Brent crude reverses course and climbs more than 4% to nearly $104 a barrel, ending a six-session slide that had been easing inflation concerns. S&P Global's flash survey then shows U.S. business output growing at its fastest pace in more than five years, with the composite index at 58.4, its highest since July 2021.

The Treasury's $70 billion sale of five-year notes also draws weak demand. The auction clears at 5.033%, the highest yield since 2006 and about 3 basis points above where the notes trade just before the sale, indicating investors require extra compensation to absorb the debt.

Token losses widen ahead of options expiry

DOGE posts the largest drop among major tokens, falling 7% to just above 9 cents. ZEC, XRP and HYPE each lose between 5% and 6%, while ether, SOL and BNB decline 2% to 3%; TRX remains flat.

Higher government bond yields increase the opportunity cost of holding assets that offer no income, including bitcoin, and make it more expensive to finance leveraged positions. That dynamic adds to market caution before Friday's roughly $14 billion options expiration.

Bitcoin now sits below $85,000, a strike level where Ledn co-founder Mauricio Di Bartolomeo previously flagged a large block of call options ahead of the Deribit expiry. The positioning suggests traders are closely watching whether further macro-driven pressure spills into options-related volatility.

In our earlier article on the surge in U.S. Treasury yields above 5%, we explained how stronger-than-expected U.S. business activity and shifting Fed rate expectations pushed borrowing costs to multi-year highs, including the five-year yield topping 5%. We also noted that higher yields and weak auction demand tighten financial conditions and can quickly weigh on risk assets by raising financing costs and making “risk-free” returns more attractive.

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