Treasury Yields Push Bitcoin Below $80,000 Amid ETF Outflows

Bitcoin fell below $80,000, trading near $79,000 after a failed attempt to hold above $82,000. The drop coincided with a rise in U.S. Treasury yields and large withdrawals from U.S. spot Bitcoin exchange-traded funds.

The 10-year Treasury yield rose above 4.5% for the first time since June 2025. The 30-year yield moved toward about 5.1%. Jim Bianco of Bianco Research noted the long bond was roughly eight basis points from a fresh 19-year high.

Higher Treasury yields increase returns on cash and government debt, which narrows the relative return on a non-yielding asset like Bitcoin. Nicolai Sondergaard, a research analyst at Nansen, commented that the 10-year pressing toward multi-month highs compresses the risk premium for assets such as Bitcoin and raises the cost of holding zero-yield holdings.

Data tracked by market platforms showed U.S. spot Bitcoin ETFs were on pace for about $700 million in weekly outflows, the largest weekly retreat since late January. Those withdrawals removed a regulated source of spot demand that had supported prices earlier in the year.

On-chain indicators reflected weaker demand. CryptoQuant’s Cumulative Volume Delta declined across major venues. Monthly averages of net spot flows on Binance and Coinbase slipped from roughly $50 million and $30 million to about $6.5 million and $5.7 million, respectively. The indicator briefly turned negative on May 8.

Geopolitical uncertainty also influenced trading. The unresolved conflict between Iran and the United States added questions about near-term growth and inflation after comments from President Donald Trump that the conflict would last only a few weeks.

Capital within crypto shifted toward instruments that offer yield or liquidity. Smart-money wallets increased allocations to stablecoins. The market value of tokenized U.S. Treasurys rose to about $15.35 billion from roughly $8.9 billion at the start of the year, an increase of about 70%.

Marcin Kazmierczak, co-founder of RedStone, highlighted that institutional products now offer short-duration Treasury exposure on blockchain with yields above 4% and 24/7 settlement. Analysts at Bitunix and other firms said higher yields could pressure Bitcoin in the near term while U.S. fiscal deficits and rising debt issuance may affect longer-term interest in fixed-supply assets.

Analysts noted that a sustained rebound in Bitcoin would likely require either a pullback in Treasury yields or a reversal in ETF flows large enough to offset rate-related pressure.