Bitcoin dropped 8.25% while real yields declined 16 basis points, raising questions about why a historically supportive macroeconomic shift has offered little relief.
Bitcoin is struggling to recover despite falling US Treasury yields, as technology-stock weakness and persistent ETF withdrawals weigh on demand.
Between Oct. 21 and Oct. 30, the world's largest cryptocurrency declined 8.25%, falling from approximately $84,134 to $77,191, according to CryptoSlate's data.
Over the same period, the Federal Reserve's data shows that yields on 10-year inflation-protected US Treasuries fell from 2.76% to 2.60%, down 16 basis points. The Nasdaq-100 also lost 4.82%, reflecting mounting pressure on technology stocks.
The divergence is notable because lower real Treasury yields typically reduce the opportunity cost of holding non-yielding assets such as Bitcoin. However, selling pressure across crypto and parts of the equity market has overwhelmed that potential support.
The weakness continued into November. On Nov. 2, the Nasdaq-100 declined another 1.39%, while Bitcoin's daily Coinbase price observation fell 1.34% to approximately $77,062 from the previous day.
Bitcoin was trading near $76,861 early Tuesday, leaving it below the psychologically important $80,000 level.
Bitfinex attributed the weakness to declining technology shares and subdued spot-market demand, arguing that those pressures were overwhelming the potential support from falling real Treasury yields.
The selling pressure was compounded by Binance's Oct. 29 security breach, which crypto trading firm Wintermute identified as the dominant crypto-specific shock behind last week's downturn.
5 billion in crypto liquidations, with long positions accounting for approximately 85% of the total.
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